Portfolio a Has a Beta of 1

question 1

Multiple Choice

Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of .7 and an expected return of 17%. The risk-free rate of return is 9%. If a hedge fund manager wants to take advantage of an arbitrage opportunity, she should take a short position in portfolio ________ and a long position in portfolio ________.

• A) A; A
• B) A; B
• C) B; A
• D) B; B

Understand the principles of depth-of-processing in enhancing memory retention.

Identify the role of imagery and mental placement in facilitating memory recall.

Comprehend the neurological basis of memory and the distribution of memory traces within the brain.

Understand the concept of marginal and average products of labor and their relationship to labor productivity.

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Definitions:

Group Supervision

A process in which multiple individuals (usually professionals in training) receive guidance and feedback on their work from a supervisor in a group setting.

Time-Efficient

Refers to methods or strategies that are designed to achieve results or accomplish tasks in the shortest possible time without sacrificing quality.

Treatment Interventions

Strategies or actions designed to address and mitigate specific health or behavioral problems, often part of a broader treatment plan.

Life Experiences

Events, situations, or milestones that an individual encounters throughout their life, shaping their views, personality, and behavior.