Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000 invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta? 0.85
Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000 invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta? 0.85
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
Problem 1PS
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![Question 4
Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000
invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta?
A 0.85
B 0.97
1.02
(D) 1.11
E 1.18](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd9974c8-4445-42ab-bc2e-9d576aa3cc73%2F866811c0-b00a-42eb-b249-9fc2b5471e57%2Fej6dfn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 4
Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta of 1.10, and $30,000
invested in a stock with a beta of 1.08. If these are the only investments in her portfolio, what is her portfolio beta?
A 0.85
B 0.97
1.02
(D) 1.11
E 1.18
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