Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 2.3. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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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Portfolio Beta

Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 2.3. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

 

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