An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?
A) 0.00
B) 0.72
C) 1.20
D) 1.60

Name: An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio? A) 0.00 B) 0.72 C) 1.20 D) 1.60
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Question

Quizplus · Accepted Answer

($10,000/$25,000 * 0) = ($15,000/$25,000 * 1.2) = 0.72

An Investor Has $10,000 Invested in Treasury Securities and $15,000