Jenna Holds a Diversified $100,000 Portfolio Consisting of 20 Stocks

question 117

Multiple Choice

Jenna holds a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each.The portfolio's beta is 1.12.Jenna plans to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80.What will the portfolio's new beta be?

• A) 1.286
• B) 1.255
• C) 1.224
• D) 1.194
• E) 1.165

Understand various organizational development techniques used to enhance performance.

Gain insights into the utilization of assessment centers as a selection tool.

Familiarize with the different types of employment tests and their applications.

Understand the concept of average total cost and its significance in the short run and long run.

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Definitions:

Most Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing the use of resources.

ATC Curve

The Average Total Cost Curve, which represents the average cost per unit of output over various levels of production, illustrating how costs change with output levels.

AVC Curve

The average variable cost curve, which plots the variable cost per unit of output at different levels of production.

Perfect Competitor's Firm

A company operating in a market where no single firm can influence price, and all firms sell identical products.