Question

Bill Dukes has $100,000 invested in a 2-stock portfolio. $32,500 is invested in Stock X and...

Bill Dukes has $100,000 invested in a 2-stock portfolio. $32,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Do not round your intermediate calculations. Round the final answer to 2 decimal places.

a. 1.06 b. 1.25 c. 0.72 d. 0.96 e. 0.77

Homework Answers

Answer #1

Portfolio beta = 0.96

option "d" is correct.

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