You own $10,000 of City Steel stock that has a beta of 2.4. You also own $9,000 of Rent-N-Co (beta = 1.9) and $1,000 of Lincoln Corporation (beta = -0.5). What is the beta of your portfolio? 1.27 1.82 1.6 2.03

You own $10,000 of City Steel stock that has a beta of 2.4. You also own $9,000 of Rent-N-Co (beta = 1.9) and $1,000 of Lincoln Corporation (beta = -0.5). What is the beta of your portfolio? 1.27 1.82 1.6 2.03

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

You own $10,000 of City Steel stock that has a beta of 2.4. You also own $9,000 of Rent-N-Co (beta = 1.9) and $1,000 of Lincoln Corporation (beta = -0.5). What is the beta of your portfolio?

1.27

1.82

1.6

2.03

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