Calculating the portfolio beta


Tom Skinner has $45,000 invested in a stock with a beta of 0.8 and another $55,000 invested in a stock with a beta of 1.4. These are the only two investments in his portfolio. What is his portfolio's beta?

  • 0.93
  • 0.98
  • 1.03
  • 1.08
  • 1.13

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Finance Basics: Calculating the portfolio beta
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