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A Portfolio Contains Four Assets

Question 61

Multiple Choice

A portfolio contains four assets.Asset 1 has a beta of .7 and represents 35 percent of the portfolio.Asset 2 has a beta of 1.3 and represents 20 percent of the portfolio.Asset 3 has a beta of 1.1 and is 25 percent of the portfolio.Asset 4 has a beta of 2.16.What is the portfolio beta?


A) 1.212
B) 1.264
C) 1.308
D) 1.480
E) 1.642

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