Nicole holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0 If Nicole sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be ________.
A) 0.60
B) 0.88
C) 1.00
D) 1.25
D
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Laxatives are most likely to have:
A) high promotional elasticity and high holding cost. B) high promotional elasticity and low holding cost. C) low promotional elasticity and high holding cost. D) low promotional elasticity and low holding cost.
Which of the following statements is true of contract ratification?
A. For a person adjudicated insane, his or her personal representatives cannot ratify the contract. B. Minors who have lied about their age can ratify their contracts. C. People who regain their mental capacity can ratify their contracts. D. A contract is voidable if it is ratified on reaching majority.
The text argues that the plight of the homeless is a result of the forces of market competition in our market-directed economies.
Answer the following statement true (T) or false (F)
When parity conditions are not in effect in currency and money markets, traders could make extraordinary profits from a practice known as ________
A) covered interest rate parity B) covered interest rate arbitrage C) triangular arbitrage D) forward market arbitrage