14.

Three years ago you invested in three companies. Your first position, IBM, cost $50,000 and is now worth $30,000. Your second position, Ford Motor Company, cost $25,000 and is currently worth $50,000. Green Dot was your third investment, and it cost $25,000, and its market value has remained constant. The beta for the three companies are: IBM: 0.86; Ford: 0.82; and Green Dot: 1.61. What is the beta of the portfolioassuming that the weight of each stock in the portfolio is rounded to the nearest whole percentage?

a. 1.038

b. 0.994

c. 1.135

d. 1.000