You Would Like to Combine a Risky Share with a Beta

question 62

Multiple Choice

You would like to combine a risky share with a beta of 1.5 with Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market.What percentage of the portfolio should be invested in Treasury bills?

• A)25%
• B)33%
• C)50%
• D)67%
• E)75%

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Definitions:

Barter Services

The act of exchanging goods or services for other goods or services without using money as a medium.

Ethical Dilemmas

Situations where a person must choose between actions that are morally conflicting, challenging personal ethics.

Ethics Codes

A set of principles and guidelines designed to help professionals conduct their work with integrity, professionalism, and respect for those they serve.

Dogma

A principle or set of principles laid down by an authority as incontrovertibly true.