A Portfolio Has 40% Invested in Asset 1 and 60

question 60

Multiple Choice

A portfolio has 40% invested in Asset 1 and 60% invested in Asset 2.If Asset 1 has a beta of 1.2 and Asset 2 has a beta of 1.8,what's the beta of the portfolio?

• A) 1.50
• B) 1.56
• C) 1.20
• D) 1.80
• E) cannot tell from the given information

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Definitions:

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