Jim Angel holds a $200,000 portfolio consisting of the following stocks:
| Stock |
Investment |
Beta |
| A |
$50,000 |
0.75 |
| B |
$50,000 |
0.80 |
| C |
$50,000 |
1.00 |
| D |
$50,000 |
1.20 |
| Total |
$200,000 |
|
|
|
|
What is the portfolio's beta?
Answer
|
a. |
0.956 |
|
b. |
0.938 |
|
c. |
1.022 |
|
d. |
0.853 |
|
e. |
1.144 |