Suppose Stan Holds a Portfolio Consisting of a $10,000 Investment

question 27

Multiple Choice

Suppose Stan holds a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose Stan decided to sell one of his stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.35. What would the portfolio's new beta be?

• A) 1.17
• B) 1.23
• C) 1.29
• D) 1.36

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Definitions:

Consistent Exercise

Regular physical activity maintained over time, important for achieving and maintaining overall health and fitness.

Inconsistent Exercise

Refers to an irregular or erratic pattern of physical activity, which can diminish the effectiveness of exercise benefits on health and fitness.

Minor Injuries

Physical harm or damage to the body that is small in severity and does not typically require extensive medical treatment.

Physically Fit

A state of health and well-being achieved through regular physical activity, proper nutrition, and sufficient rest.