You Have a Portfolio with a Beta of 0

question 114

Multiple Choice

You have a portfolio with a beta of 0.9. What will be the new portfolio beta if you keep 40 percent of your money in the old portfolio and 60 percent in a stock with a beta of 1.5?

• A) 1.00
• B) 1.20
• C) 1.26
• D) 2.40