Home Grades Personalized Reviews Discussion Course Materials

Home Grades Personalized Reviews Discussion Course Materials nal Exam -Chapters 7-11,14,16 Time Remaining: 129 minutes I Back to Assignment Deadline Today at 09:00 8. An individual has $35,000 invested in a stock with a beta of 0.85 and another $45,000 invested in a stock with a beta of 1.80. If these are the only two investments in her portfolio, what is her portfolioA?Ac??s beta? O A. 1.68 O B. 148 1.58 ? D. 1.38 Contae without siving Copyright Notices Terms of Use Privacy NoticeSecurity Notice Accessibility P11 80888 F3 00 F4 FS &e; 7

Solution

Total Investment = 35000 + 45000 = $80,000

Beta of portfolio = (0.85*35000/80000) + (1.8*45000/80000) = 1.38 Option D.