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.

Apply queuing theory to solve real-world problems, such as calculating waiting times in service systems.

Differentiate between continuous and discrete variables with examples.

Understand the concept of a transient period in the context of queuing systems.

Analyze the stability of a queuing system by comparing the arrival and service rates.

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