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

question 7

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

---

Definitions:

Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Dispositional Traits

Enduring personal characteristics that influence behavior, thoughts, and emotions, consistent across different situations.

Basic Strengths

Fundamental positive qualities or characteristics that individuals possess, which contribute to their overall psychological well-being and resilience.

Subliminal Perceptions

A process by which information is sent to the brain at a level below the conscious awareness, often influencing thoughts, feelings, or actions without direct awareness.