Multiple Choice
You own an equally-weighted portfolio consisting of a stock and Treasury bills. You sell a portion of the Treasury bills, and invest in Stock M, which has a positive covariance with the market. The beta of your portfolio will:
A) increase.
B) decrease.
C) remain the same.
D) increase or decrease.
E) decrease or remain the same.
Correct Answer:
Verified
Correct Answer:
Verified
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