Question

Asked Oct 7, 2019

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Mrs. Landis has a 2-stock portfolio with a total value of $530,000. $175,000 is invested in Stock A with a beta of 1.55 and the remainder is invested in Stock B with a beta of 1.25. What is her portfolio's beta?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

A. 1.17

B. 1.35

C. 1.59

D. 1.27

E. 1.46

Step 1

w1 = proportion invested in stock A = 175,000 / 530,000 = 0.3302

w2 = proportion invested in stock B = 1 ...

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