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A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.7). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? A. 1.22 B. 1.06 C. 1.38 D. 1.27

A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.7). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? A. 1.22 B. 1.06 C. 1.38 D. 1.27

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.7). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? A. 1.22 B. 1.06 C. 1.38 D. 1.27
Transcribed Image Text:A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.7). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? A. 1.22 B. 1.06 C. 1.38 D. 1.27
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