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:

Gifted

Describes individuals, particularly children, who demonstrate exceptional levels of aptitude or competence in one or more domains at a level significantly beyond their age peers.

Talented

Having a natural aptitude or skill in a specific domain, often implying above-average abilities in that area.

Cross-Sectional Studies

A type of observational study that analyzes data from a population, or a representative subset, at a specific point in time.

Cohort Effects

Variations in the characteristics of an area of study (such as age, social background, or technology experience) that are related to the era when individuals were born or during which they grew up.