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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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