You Are Going to Invest $20,000 in a Portfolio Consisting

Multiple Choice

You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
$\begin{array}{ccccc}&\text { Annual }\\\text { Asset }&\text {Return }&\text {Probability}&\text { Beta}&\text { Proportion }\\\hline\mathrm{X} & 10 \% & 0.50 & 1.2 & 0.333 \\\mathrm{Y} & 8 \% & 0.25 & 1.6 & 0.333 \\\mathrm{Z} & 16 \% & 0.25 & 2.0 & 0.333\end{array}$
-The beta of the portfolio in Figure 7.2, containing assets X, Y, and Z, is

A) 2.0.
B) 2.4.
C) 1.6.
D) 1.5.