You are going to invest $20,000 in a portfolio consisting of assets X, Y, and...

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Finance

You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:

Asset Annual Return Probability Beta Proportion

X 10% 0.50 1.2 0.333

Y 8% 0.25 1.6 0.333

Z 16% 0.25 2.0 0.333

Given the information in Table 5.2, The beta of the portfolio in Table 8.2, containing assets X, Y, and Z is ________.

Select one:

a. 1.6

b. 2.0

c. 1.5

d. 2.4

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