When the Stock Market Has Bottomed Out and Is Beginning

question 101

Multiple Choice

When the stock market has bottomed out and is beginning to recover, the best portfolio to own is the one with a beta of

• A) 0.0.
• B) +0.5.
• C) +1.5.
• D) +2.0.

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Definitions:

Independent Events

Events whose occurrence or outcome is not influenced by the occurrence or outcome of another event.

P(A and B)

The probability that both events A and B occur.

P(A)

The probability of event A occurring, an elementary concept in probability and statistics.

P(B)

The likelihood that event B will happen.