Assume a Portfolio Is Made Up of Four Stocks The Beta for the Portfolio Is:
A) 1

Multiple Choice

Assume a portfolio is made up of four stocks: $\begin{array} { | l | l | l | l | } \hline & \text { Expected } & \text { Investment } & \text { Beta } \\\hline & \text { Return } & & \\\hline \text { Stock A } & 18 \% & \$ 150,000 & 1.20 \\\hline \text { Stock B } & 14 \% & \$ 225,000 & 1.00 \\\hline \text { Stock C } & 12 \% & \$ 300,000 & 0.95 \\\hline \text { Stock D } & 20 \% & \$ 75,000 & 1.25 \\\hline & & \$ 750,000 & \\\hline\end{array}$ The beta for the portfolio is:

A) 1.135.
B) 1.045.
C) 1.105.
D) None of the above