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An individual has $10,000 invested in a stock with a beta of 0.4 and another $55,000...

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Finance

An individual has $10,000 invested in a stock with a beta of 0.4and another $55,000 invested in a stock with a beta of 2.5. Ifthese are the only two investments in her portfolio, what is herportfolio's beta? Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
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Notes We calculate portfolio beta by calculating weight of each investment in the portfolio and then beta is multiplied with    See Answer
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