Alex has $1,000 invested in a three-stock portfolio. $200 are invested in Peter's Manufacturing, $100 in Jane's Manufacturing and the remainder is invested in a market ETF. Peter's beta is 1.30, and Jane's beta is 0.75. What is the portfolio's beta? a. 0.48 b. 0.74 C. 1 d. 1.035

Alex has $1,000 invested in a three-stock portfolio. $200 are invested in Peter's Manufacturing, $100 in Jane's Manufacturing and the remainder is invested in a market ETF. Peter's beta is 1.30, and Jane's beta is 0.75. What is the portfolio's beta? a. 0.48 b. 0.74 C. 1 d. 1.035

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 1P: Your investment club has only two stocks in its portfolio. 20,000 is invested in a stock with a beta...

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Question

Alex has $1,000 invested in a three-stock portfolio. $200 are invested in Peter's Manufacturing,
$100 in Jane's Manufacturing and the remainder is invested in a market ETF. Peter's beta is 1.30,
and Jane's beta is 0.75. What is the portfolio's beta?
a. 0.48
b. 0.74
C. 1
d. 1.035

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