You Manage Your Own Portfolio of About Twenty Stocks

question 126

Multiple Choice

You manage your own portfolio of about twenty stocks.One of which is Honda Motors.The returns on Honda tend to move up and down with the economy as a whole.You decide to sell Honda and replace it with the common stock of Repo-Man Inc.,an asset recovery company.Repo-Man's shares tend to rise when the economy falls,and vice versa.Your portfolio's beta should:

• A) Decrease
• B) Increase
• C) Remain unchanged
• D) Either Increase or Decrease

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Definitions:

Building Leaks

Water intrusion problems within a structure's envelope, causing damage and potential health issues due to moisture.

Dram Shop Act

A state statute that imposes liability on the owners of bars and taverns, as well as those who serve alcoholic drinks to the public, for injuries resulting from accidents caused by intoxicated persons when the sellers or servers of alcoholic drinks contributed to the intoxication.

Social Hosts

Individuals who provide alcohol to guests in a social setting, potentially facing legal liabilities if guests cause harm while intoxicated.

Liability

A legal obligation or responsibility that may result in the payment of damages or compliance with certain acts, often associated with the outcome of lawsuits or breaches of contract.