A friend tells you about a fund that does just as well as the market in bull markets but cushions your fall in bear markets. That is, its returns fall by less than the market's in bear markets. Your friend is telling you that the fund's beta is ________ in bull markets, but that the fund's beta is ________ in bear markets

You own $9,000 of Spartan Steel stock that has a beta of 2.5. You also own $7,000 of Roman Rocks(beta = 1.2) and $8,000 of EthanEducational (beta = 0.4). What is the beta of your portfolio?

A.0.95 B.1.18 C.1.07 D.1.42 E.1.53

You hold a diversified portfolio consisting of $2,500 investment in the first stock, $3,500 in the second stock and $4,000 in the third stock. The beta of the first stock is 0.7 and the beta for the remaining 75% of the portfolio is 1.4. You have decided to sell the first stock for $2,500 and purchase $2,500 of a new stock. The new stock has a beta of 2.2. After these two transactions (sell and buy), what will be the beta of the new portfolio?

A.1.72 B.1.68 C.1.60 D.1.50 E 1.40