Portfolio Beta You Have a Portfolio with a Beta of 1.25.What

question 31

Multiple Choice

Portfolio Beta You have a portfolio with a beta of 1.25.What will be the new portfolio beta if you keep 80 percent of your money in the old portfolio and 20 percent in a stock with a beta of 1.75?

• A)1.00
• B)1.35
• C)1.50
• D)3.00

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Definitions:

Referent Other

An individual or group that people compare themselves to for the purpose of evaluating their own behavior, abilities, or beliefs.

Perceived Inequity

The sense of feeling under-rewarded or over-rewarded in comparison with others.

Inputs Ratio

Measurement comparing the amount or quality of resources used to the output or results achieved, often used in productivity and efficiency analysis.

ERG Theory

A theory of human motivation that categorizes needs into three groups: Existence, Relatedness, and Growth, suggesting that individuals seek to fulfill these needs in a hierarchical order.