Multiple Choice
The expected return on Alpha Inc.is 8.0% and the expected return on Beta Inc.is 24.0%.What is the trade-off between investing in Alpha and Beta if the portfolio weight in Alpha is increased by 1%?
A) -0.08%
B) -0.16%
C) -0.24%
D) -0.32%
Correct Answer:
Verified
Correct Answer:
Verified
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