Suppose You Hold a Portfolio Consisting of a $10,000 Investment

question 72

Multiple Choice

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks.The portfolio's beta is 1.25.Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.05.What would the portfolio's new beta be? Do not round your intermediate calculations.

• A) 1.11
• B) 1.26
• C) 1.14
• D) 1.24
• E) 1.41

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Trust

The confidence in the reliability, truth, ability, or strength of someone or something, often built over time through consistent actions.

Self-disclosure

The act of sharing personal, private, or sensitive information with others to foster intimacy or trust.

Appropriate Time

The most suitable or optimal moment to carry out an action or event.

Self-description

The process by which individuals convey their own attributes, characteristics, and experiences through verbal or written communication.