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Author Question: Alexis has inherited $120,000 from her grandmother's estate. She has decided to invest $10,000 in ... (Read 13 times)

Dannyrod2

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Question 1

A portfolio with a beta of 1.26
◦ is 126% more risky than the overall market.
◦ has less risk than the lowest risk security held within that portfolio.
◦ is 26% more risky than a risk-free asset.
◦ is considerably more risky than the overall market.

Question 2

Alexis has inherited $120,000 from her grandmother's estate.  She has decided to invest $10,000 in each of 12 different industries.  Because she has lower than average risk tolerance, she carefully seeks out stocks so that her portfolio will have a weighted average beta of .80.
◦ Alexis is using traditional portfolio management techniques.
◦ Alexis is using modern portfolio management techniques.
◦ Alexis is using a combination of modern and traditional portfolio management techniques.
◦ Alexis seems to be unaware of modern portfolio management techniques.


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Marked as best answer by Dannyrod2 on Mar 29, 2022

brunoanthony

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Dannyrod2

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


elyse44

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Reply 3 on: Yesterday
Excellent

 

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