If You Have a Portfolio with a Market Value of $100

question 54

Multiple Choice

If you have a portfolio with a market value of $100 million and a beta (measured against the S&P 500) of 1.5, then if the market rises by 10%, what value would you expect your portfolio to have?

• A) $100 million
• B) $110 million
• C) $150 million
• D) $165 million
• E) $1.65 billion

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Definitions:

Purchase Discounts

Price reductions given by suppliers to buyers as an incentive for early payment of their purchase invoices.

Journalize

The process of recording business transactions in the journal, making note of the debit and credit of each transaction as per double-entry bookkeeping rules.

Inventory Valuation

The process of determining the monetary value of a company's inventory, using methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

Descriptive Statements

Statements that provide detailed explanations or descriptions of scenarios, processes, or items without making analytical judgments.