Suppose You Held a Well-Diversified Portfolio with a Very Large

question 63

Multiple Choice

Suppose you held a well-diversified portfolio with a very large number of securities,and that the single index model holds.If the β of your portfolio was 0.22 and β_Mwas 0.19,the β of the portfolio would be approximately ________.

• A)1.34
• B)1.16
• C)1.25
• D)1.56
• E)none of the above

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Definitions:

Glia

Non-neuronal cells in the central and peripheral nervous system that provide support, nourishment, and protection for neurons.

Neurons

Specialized cells of the nervous system that transmit signals throughout the body.

Support

Support refers to the provision of physical or emotional assistance to others, contributing to their well-being or relief.

Bone

A hard, dense connective tissue that forms the structure of the skeleton and performs functions such as support, protection, and blood cell production.