A Portfolio with a Beta of 1.06

question 77

Multiple Choice

A portfolio with a beta of 1.06

• A) is 106% more risky than the overall market.
• B) has less risk than the lowest risk security held within that portfolio.
• C) is 6% more risky than a risk-free asset.
• D) is slightly more risky than the overall market.

Appreciate the importance of framing and presentation in decision-making.

Explain the role of shortcuts and assumptions in improving decision-making efficiency while recognizing their potential pitfalls.

Understand the relevance and contributions of Herbert Simon’s work to the field of decision-making.

Understand the basic concepts and functions of the sensory systems, including vision, hearing, taste, smell, and touch.