You manage your own portfolio of about twenty shares, one of which is Honda
Motors. The returns on Honda tend to move up and down with the economy as a
whole. You decide to sell Honda and replace it with the common stock of Repo-Man
Inc., an asset recovery company. Repo-Man's shares tend to rise when the economy
falls, and vice versa. Your portfolio's beta should
Decrease.
Increase.
Either increase or decrease.
None of the available options.
Remain unchanged.
