You Own a Portfolio with Stocks a and B

question 64

Multiple Choice

You own a portfolio with Stocks A and B. The betas of the stocks are 0.9 and 1.1, respectively. You sell a portion of your position in Stock A and short sell Stock C with a beta of 1.3.

• A) The beta of the new portfolio will increase.
• B) The beta of the new portfolio will decrease.
• C) The beta of the new portfolio will remain the same.
• D) The beta of the new portfolio will remain the same or increase.
• E) The beta of the new portfolio will remain the same or decrease.

Evaluate sources for credibility and relevance in research.

Understand the purpose and structure of various citation formats.

Master key Word functionalities, including keyboard shortcuts, for efficient document editing.

Recognize the importance of utilizing Word tools, such as AutoCorrect and endnotes, to enhance document quality.

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Definitions:

Chronic Goals

Long-term objectives that an individual persistently pursues over an extended period, regardless of obstacles or challenges encountered.

Promotion Goals

Objectives oriented toward advancement, growth, or achievement in one's career or personal ambitions.

Prevention Goals

Objectives centered around avoiding negative outcomes or preventing undesirable situations.

Coaching

The practice of providing guidance, support, and feedback to individuals or teams to develop skills, improve performance, and achieve goals.