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

Gain insights into the importance of meeting customer needs as the core of a marketing strategy.

Identify the elements and importance of a marketing-oriented strategy to a firm’s profitability and competitive advantage.

Understand the role of marketing strategy in defining a business’s purpose and guiding its actions to achieve profitable customer relationships.

Explore the various growth strategies available to firms, including diversification, market penetration, and product development.

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Definitions:

Theory Y

A management style that assumes employees are inherently motivated and responsible, favoring a participative approach.

Close Supervision

The process of overseeing employees' work and tasks very closely, with frequent monitoring and guidance.

Legislation

The act of making or enacting laws, often through a governmental body or legislative assembly.

Legal Trouble

Situations or circumstances that result in legal proceedings, disputes, or potential consequences under law.