Suppose the beta of a four-asset portfolio is 1.8.The portfolio is composed of $1,500 invested in Stock W,$2,000 in Stock X,$2,500 in Stock Y,and $3,000 in Stock Z.What is the beta of Stock Z if the betas of Stock W,X,and Y are 0.7,1.3,and 2.5,respectively?
A) 0.7
B) 1.1
C) 1.6
D) 2.1

Question

Quizplus · Accepted Answer

Total portfolio value = $1,500 + $2,000 + $2,500 + $3,000 = $9,000
Stock Z's beta, 11ea8229_34cf_e0a7_bbd8_430d6294b07c_TB1726_00

Suppose the Beta of a Four-Asset Portfolio Is 1