Multiple Choice
Suppose the beta of a four-asset portfolio is 1.8.The portfolio is composed of $1,500 invested in Stock W, $2,000 in Stock X, $2,500 in Stock Y, and $3,000 in Stock Z.What is the beta of Stock Z if the betas of Stock W, X, and Y are 0.7, 1.3, and 2.5, respectively?
A) 0.7
B) 1.1
C) 1.6
D) 2.1
Correct Answer:
Verified
Correct Answer:
Verified
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