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

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Definitions:

Iodine

A chemical element essential for thyroid hormone production, commonly used as a disinfectant and antiseptic in medical settings.

Reproductive Function

The biological system and processes in the human body responsible for reproduction, including the production of gametes and hormones.

Cell Growth

The process by which cells increase in size and number, playing a crucial role in development and repair in organisms.

Night Vision

The ability to see in low light conditions, often enhanced by various technologies.