12.Assume the market portfolio can be decomposed into three large portfolios X, Y and Z representing respectively all stocks in three distinct economic sectors (such as Industry, Agriculture, Services). Their respective market capitalizations are 40%, 50% and 10% of the market capitalization respectively. You also know the X has a beta of 1.8, Y has a beta of 0.3, what’s the beta of portfolio Z? a.1.3 b.0.9 c.0.2 d.-0.3

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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12.Assume the market portfolio can be decomposed into three large portfolios X, Y and Z representing respectively all stocks in three distinct economic sectors (such as Industry, Agriculture, Services). Their respective market capitalizations are 40%, 50% and 10% of the market capitalization respectively. You also know the X has a beta of 1.8, Y has a beta of 0.3, what’s the beta of portfolio Z?

a.1.3
b.0.9
c.0.2
d.-0.3

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