Tom O'Brien Has a 2-Stock Portfolio with a Total Value

question 85

Multiple Choice

Tom O'Brien has a 2-stock portfolio with a total value of $100,000.$47,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.What is his portfolio's beta? Do not round your intermediate calculations.Round your final answer to 2 decimal places.

• A) 1.04
• B) 1.10
• C) 1.09
• D) 1.06
• E) 1.05

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