You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
$\begin{array}{ccccc}&\text { Annual }\
\text { Asset }&\text {Return }&\text {Probability}&\text { Beta}&\text { Proportion }\
\hline\mathrm{X} & 10 \% & 0.50 & 1.2 & 0.333 \
\mathrm{Y} & 8 \% & 0.25 & 1.6 & 0.333 \
\mathrm{Z} & 16 \% & 0.25 & 2.0 & 0.333
\end{array}$
-The beta of the portfolio in Figure 7.2, containing assets X, Y, and Z, is
A) 2.0.
B) 2.4.
C) 1.6.
D) 1.5.

Question

You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: 
$\begin{array}{ccccc}&\text { Annual }\
\text { Asset }&\text {Return }&\text {Probability}&\text { Beta}&\text { Proportion }\
\hline\mathrm{X} & 10 \% & 0.50 & 1.2 & 0.333 \
\mathrm{Y} & 8 \% & 0.25 & 1.6 & 0.333 \
\mathrm{Z} & 16 \% & 0.25 & 2.0 & 0.333
\end{array}$
-The beta of the portfolio in Figure 7.2, containing assets X, Y, and Z, is
A) 2.0.
B) 2.4.
C) 1.6.
D) 1.5.

Quizplus · Accepted Answer

The Answer of You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: 
$\begin{array}{ccccc}&\text { Annual }\
\text { Asset }&\text {Return }&\text {Probability}&\text { Beta}&\text { Proportion }\
\hline\mathrm{X} & 10 \% & 0.50 & 1.2 & 0.333 \
\mathrm{Y} & 8 \% & 0.25 & 1.6 & 0.333 \
\mathrm{Z} & 16 \% & 0.25 & 2.0 & 0.333
\end{array}$
-The beta of the portfolio in Figure 7.2, containing assets X, Y, and Z, is
A) 2.0.
B) 2.4.
C) 1.6.
D) 1.5.

You Are Going to Invest $20,000 in a Portfolio Consisting