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16. A portfolio contains five assets. Asset 1 has a beta of .8 and represents 25 percent of the portfolio. Asset 2 has a beta

16.

A portfolio contains five assets. Asset 1 has a beta of .8 and represents 25 percent of the portfolio. Asset 2 has a beta of 1.4 and represents 10 percent of the portfolio. Asset 3 has a beta of 1.1 and is 20 percent of the portfolio. Asset 4 has a beta of 2.3 and represents 30 percent of the portfolio. Asset 5 has a beta of 1.8. What is the beta of the portfolio?

A.

1.09
B.

1.52
C.

1.21
D.

1.64

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