2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5. The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is A. 1.55 B. 1.65 C. 1.75 D. 1.70
2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5. The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is A. 1.55 B. 1.65 C. 1.75 D. 1.70
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 21P
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![2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5.
The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is
A. 1.55
B. 1.65
C. 1.75
D. 1.70](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f81ed7e-0529-4fe0-bef2-aafd4f87d214%2F781336c2-9ba4-4145-98c4-a4be521640fe%2Ftsqf11_processed.png&w=3840&q=75)
Transcribed Image Text:2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5.
The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is
A. 1.55
B. 1.65
C. 1.75
D. 1.70
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