If You Expect the Market to Increase Which of the Following

question 59

Multiple Choice

If you expect the market to increase which of the following portfolios should you purchase?

• A) a portfolio with a beta of 1.9
• B) a portfolio with a beta of 1.0
• C) a portfolio with a beta of 0
• D) a portfolio with a beta of -0.5

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Definitions:

Classical Conditioning

A method of learning that involves forming connections between stimuli in the environment and those that occur naturally.

Modify Behavior

The process of changing or adjusting one's actions, reactions, or habits, often through various forms of learning or intervention.

Reciprocal Determinism

A concept in psychology that suggests a person's behavior is both influenced by and influences their personal factors and the environment.

Crying Child

A young individual expressing distress, discomfort, or the need for attention through tears and vocalizations.