What Is the Beta of a Portfolio Which Consists of the Following

question 60

Multiple Choice

What is the beta of a portfolio which consists of the following?

• A) 1.18
• B) 1.22
• C) 1.23
• D) 1.32
• E) 1.37

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Total Product

The overall quantity of goods or services produced by a firm or an economy over a specific period, often used to measure productivity.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while other factors are held constant, the incremental output per unit of the increased factor will eventually decrease.

Decreasing Rate

A condition in which the rate or speed of a given process or phenomenon reduces over time.