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Suppose your portfolio has a beta of 2 and you think that this value is far too high for your level of risk tolerance. Which

Suppose your portfolio has a beta of 2 and you think that this value is far too high for your level of risk tolerance. Which of the folloowing actions would reduce the beta of your portfolio?

Select all the correct actions to get credit.

A)

You could sell your holdings in a fund with a beta of 0.5 and use the proceeds to buy a fund that mimics the S&P500

B)

You could sell your investments in T-Bills and use the proceeds to buy a fund that follows the market

C)

You could sell your investments in a fund that follows the market and use the proceeds to buy T-Bills

D)

You could add cash to the portfolio

E)

If your portfolio contains only T-bills, stocks with betas ranging from 0.8 to 1.3 and funds with betas ranging from 0.4 to 3.5, you could sell the stock with the highest beta and invest the proceeds in a fund that follows the market.

F)

You could sell the security with the highest beta (more than 1) and invest the proceeds in T-bills

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