An Investor Divides Her Portfolio into Three Equal Parts,with One

question 3

Multiple Choice

An investor divides her portfolio into three equal parts,with one part in Treasury bills,one part in a market index,and one part in a mutual fund with beta of 1.50.What is the beta of the investor's overall portfolio?

• A) 0.83
• B) 1.00
• C) 1.17
• D) 1.25

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Definitions:

QuickBooks

An accounting software package developed and marketed for small and medium-sized businesses, offering various financial management tools.

Closing Periods

The process of ending an accounting period by finalizing entries in the general ledger and preparing for a new financial period.

Accounting Periods

Time intervals at the end of which a company prepares financial statements, commonly monthly, quarterly, or annually.

Objectives

Clear, measurable goals that an individual or organization aims to achieve within a specific timeframe.