You Sell Some of Your Chapters Common Stock (Which Tends

Multiple Choice

You sell some of your Chapters common stock (which tends to move up and down with the economy as a whole) and replace it with the common stock of El Dorado Gold Mining, Inc. (whose shares tend to rise when the economy falls, and vice versa) . Your portfolio's beta should _______________.

A) Increase.
B) Decrease.
C) Remain unchanged.
D) Either increase or decrease.
E) Definitely exceed the beta of the market when all is said and done.