Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000 invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta? 0.85

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 1P: Your investment club has only two stocks in its portfolio. 20,000 is invested in a stock with a beta...
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Question 4
Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000
invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta?
A 0.85
B 0.97
1.02
(D) 1.11
E 1.18
Transcribed Image Text:Question 4 Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000 invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta? A 0.85 B 0.97 1.02 (D) 1.11 E 1.18
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