You Hold a Diversified Portfolio Consisting of a $5,000 Investment

question 33

Multiple Choice

You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks.The portfolio beta is equal to 1.15.You have decided to sell one of your stocks,a lead mining stock whose β = 1.0,for $5,000 net and to use the proceeds to buy $5,000 of stock in a steel company whose β = 2.0.What will be the new beta of the portfolio?

• A) 1.12
• B) 1.20
• C) 1.22
• D) 1.10
• E) 1.15

Grasp the theory of cognitive dissonance and its implications for attitude change.

Understand the psychological dynamics of obedience to authority.

Analyze the factors influencing conformity within groups.

Identify the mechanisms and effectiveness of different persuasion techniques.

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Definitions:

Firestone

A multinational tire manufacturing company known for producing a wide range of tires for vehicles.

Product Mix

The total range of products offered by a company, including variations of products based on size, color, and other attributes.

Closely Related

Items or concepts that are very similar or connected in a direct or immediate way.

Category Management

A retail and supply chain management strategy where products are managed by category as a single strategic business unit to improve performance.