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You have a $100,000 portfolio consisting of IBM, McDonald's, and Lyft stock. You have $50,000 invested...

You have a $100,000 portfolio consisting of IBM, McDonald's, and Lyft stock. You have $50,000 invested in IBM, $30,000 in McDonald's, and $20,000 in Lyft. IBM, McDonald's, and Lyft have betas of 1.2, 0.7, and 2.1, respectively. What is your portfolio beta?

Multiple Choice

1.23

1.33

1.43

1.53

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Answer #1

Ans 1.23

You have a $100,000 portfolio consisting of IBM, McDonald's, and Lyft stock. You have $50,000 invested in IBM, $30,000 in McDonald's, and $20,000 in Lyft. IBM, McDonald's, and Lyft have betas of 1.2, 0.7, and 2.1, respectively. Portfolio beta is 1.23

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