You Have a Portfolio with a Beta of 3

question 19

Multiple Choice

You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5?

• A) 3.31
• B) 3.51
• C) 3.61
• D) 3.71

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Introspection

The examination or observance of one's own emotional and mental processes, allowing for self-awareness and understanding.

Objectivity

The quality of being unbiased, detached, and free of any personal or subjective influences.

Individual Measurements

Refers to the unique data gathered from single entities or participants in a study, highlighting variations among them.