You invest $600 in security A with a beta of 1.5 and $400 in security B with a beta of .90. The beta of this portfolio is ________.
A) 1.14
B) 1.2
C) 1.26
D) 1.5

Name: You invest $600 in security A with a beta of 1.5 and $400 in security B with a beta of .90. The beta of this portfolio is ________. A) 1.14 B) 1.2 C) 1.26 D) 1.5
Brand: Quizplus
Rating: 4.7 (40 reviews)

Question

Quizplus · Accepted Answer

β_p = (1.5) 11eaaae8_8b63_f679_a4b8_f93ca6873c86_TB6474_11 + (.90) 11eaaae8_8b63_f67a_a4b8_41319657cde4_TB6474_11 = 1.26

You Invest $600 in Security a with a Beta of 1.5