A Portfolio of Securities Has a Beta of 1

question 52

Multiple Choice

A portfolio of securities has a beta of 1.14.Given this,you know that:

• A) adding another security to the portfolio must lower the portfolio beta.
• B) the portfolio has more risk than a risk-free asset but less risk than the market.
• C) each of the securities in the portfolio has more risk than an average security.
• D) the portfolio has 14 percent more risk than a risk-free security.
• E) the expected return on the portfolio is greater than the expected market return.

---

Definitions:

Individuals with Disabilities Education Act

A U.S. law that ensures students with disabilities are provided with a Free Appropriate Public Education (FAPE) that is tailored to their individual needs.

Council for Exceptional Children

An international professional organization dedicated to improving the educational outcomes for individuals with exceptionalities, disabilities, and gifts.

Educational Standards

Established criteria to determine what students should know and be able to do at certain points in their education.

Least Restrictive Environments

Educational settings that provide the greatest degree of freedom for students with disabilities, while still meeting their learning needs.