The Beta of a Portfolio Is

question 189

Multiple Choice

The beta of a portfolio is

• A) the sum of the betas of all assets in the portfolio.
• B) irrelevant, only the betas of the individual assets are important.
• C) does not change over time.
• D) is the weighted average of the betas of the individual assets in the portfolio.

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Definitions:

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Inflation Rates

The rate expressed in percentage at which the overall price level for goods and services increases, leading to a decline in purchasing power.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power currency over time.

Creditors

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