What is portfolio-s beta if remainder is invested in stock


Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $75,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio's beta?

Answer


a. 1.12

b. 0.86

c. 0.92

d. 0.99

e. 0.81

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Finance Basics: What is portfolio-s beta if remainder is invested in stock
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