An Investment Banker Has Recommended a $100,000 Portfolio Containing Assets

Multiple Choice

An investment banker has recommended a $100,000 portfolio containing assets B, D, and F. $20,000will be invested in asset B, with a beta of 1.5; $50,000 will be invested in asset D, with a beta of 2.0;and $30,000 will be invested in asset F, with a beta of .5. The beta of the portfolio is __________.

A) 1.33
B) 1.25
C) 1.45
D) unable to be determined from the information provided