An individual has $25,000 invested in a stock with a beta of 0.3 and another $40,000...

An individual has $25,000 invested in a stock with a beta of 0.3 and another $40,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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Expert Solution

Portfolio beta = Weighted average brts of sto

Portfolio beta = [25,000(0.30) + 40,000(1.40)]/75,000

Portfolio beta = 0.85

jeff jeffy answered 1 year ago

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