What Is the Beta of a Portfolio If 40 Percent

question 17

Multiple Choice

What is the beta of a portfolio if 40 percent of the funds invested in the market portfolio are borrowed at the risk-free rate?

• A) 0.60
• B) 0.83
• C) 1.40
• D) 1.67

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Definitions:

Cingulate Gyrus

A part of the brain situated in the medial aspect of the cerebral cortex, involved in processing emotions and behavior regulation.

Brain

The organ in the head of living beings responsible for central nervous system functions, including thought, memory, emotion, touch, motor skills, vision, breathing, temperature control, and much more.

Social Connections

The relationships and bonds between individuals that provide support, facilitate communication, and contribute to social cohesion.

Loneliness

The subjective feeling of lacking desired social connection, interaction, and intimacy.