Which of the following is the most correct answer for the beta of a portfolio of 35 stocks where the lowest beta for an individual security is 0.84 and the highest is 1.51? a.) The beta of the portfolio must be 1.0 because of the large number of securities in the portfolio. b.) The beta of the portfolio must be less than 1.0 because of the large number of securities in the portfolio. c.)The beta of the portfolio will be between 0 and 1.51. d.)The beta of the portfolio will be between 0.84 and 1.51.

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.