You Are Considering a Portfolio of Three Stocks with 30

Multiple Choice

You are considering a portfolio of three stocks with 30% of your money invested in company X, 45% of your money invested in company Y, and 25% of your money invested in company Z. If the betas for each stock are 1.22 for company X, 1.46 for company Y, and 1.03 for company Z, what is the portfolio beta?

A) 1.24
B) 1.00
C) 1.28
D) 1.33