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:

Older Siblings

The eldest children in a family who may have responsibilities or influence over their younger brothers or sisters.

Younger Siblings

Family members who are born after the first child in a family, often sharing a close familial bond with older siblings.

High Self-Esteem

A positive evaluation of oneself, reflecting a person's overall subjective emotional evaluation of their own worth.

Securely Attached

A type of attachment style identified in developmental psychology where individuals feel confident and trusting in their relationships, often stemming from a responsive and caring upbringing.