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

question 46

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 0.18 and β_Mwas 0.22,the β of the portfolio would be approximately ________.

• A)0.64
• B)1.19
• C)0.82
• D)1.56
• E)none of the above

---

Definitions:

Lateral Communications

Refers to the exchange of information and collaboration between colleagues or teams at the same organizational level.

Perceived Efficacy

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Active Listener

A person who engages in listening by paying close attention, asking clarifying questions, and providing feedback.

Upward Communication

The flow of messages from lower to higher organizational levels.