You Own a Portfolio Which Is Invested Equally in Two

question 82

Multiple Choice

You own a portfolio which is invested equally in two stocks and a risk-free security. The stock betas are .89 for Stock A and 1.26 for Stock B. Which one of the following will increase the portfolio beta, all else constant?

• A) increasing the amount invested in the risk-free security
• B) decreasing the weight of Stock B and increasing the weight of Stock A
• C) replacing Stock A with a security that has a beta of .76
• D) increasing the weight of Stock A and decreasing the weight of the risk-free security
• E) replacing Stock B with Stock C, which has a beta equal to that of the market

Identify factors that influence employee performance and how they are evaluated.

Recognize the importance and methods of employee selection and performance evaluation.

Understand the role of leadership styles and theories in organizational behavior.

Distinguish between objective and subjective performance evaluations.

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Definitions:

Exocrine Glands

Glands that release their secretions through ducts to an external or internal surface, not directly into the bloodstream.

Goblet Cells

Unicellular glands that secrete mucus

Circulatory System

The body system consisting of the heart, blood vessels, and blood, responsible for transporting nutrients, oxygen, and wastes among cells and the external environment.

Connective Tissue

Tissue that supports, binds together, and protects tissues and organs of the body, characterized by few cells and a large amount of extracellular matrix.