Equity portion of the portfolio

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In terms of risk levels, the ultimate result that occurs in a portfolio when part of the equity portion of the portfolio is sold and the funds then reinvested in fixed interest securities is:

a) A decline in portfolio liquidity

b) A dramatic reduction in the beta of the portfolio

c) A dramatic reduction in the beta of the equity (shares) portion of the portfolio d) An increase in portfolio risk

Reference no: EM133076060

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