You are thinking about purchasing 1,000 shares of stock in the following firms: Number of Shares Firm's Beta
Firm A 100 0.75
Firm B 200 1.47
Firm C 200 0.82
Firm D 600 1.60
If you purchase the number of shares specified, then the beta of your portfolio will be
A) 1.16.
B) 1.35.
C) 1.00.
D) Cannot be determined without knowing the stock prices.
Correct Answer:
Verified
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