You have invested in 4 stocks: X, Y, Z, and Fred. Each stock's beta and the dollars you invested in each are given below. What is the beta of this 4-stock portfolio?
- Company Beta $ Invested
- X 1.1 $10,000
- Y 1.2 $30,000
- Z 0.8 $20,000
- Fred 0.9 $40,000
Note: Provide support for your rationale.