alleryStart learning →A portfolio has 40% in assets of beta 1.5 and 60% in assets of beta 0.9. What is portfolio beta?
A1.14
B1.20
C1.05
D1.30
Answer & Solution
Correct answer: A. 1.14
Beta is the weighted average: 0.4 times 1.5 plus 0.6 times 0.9 equals 1.14.
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