2) Nicole holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0. If Inicole sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be A) 0.60 B) 0.88 C) 1.00 D) 1.25 You are going to invest $20,000 in a portfolio consisting of assets X, Y. and Z, as follows: Probability Annual Retum 10 8 16" Beta 1.2 Proportion 0.333 0.333 0.333 0.25 0.25 1.6 20 3) Given the information in the above table, what is the expected annual return of this portfolio? A) 11.4% B) 10.0% C) 11.0% D) 11.7% 4) The beta of the portfolio in the above table, containing assets X, Y, and Z is A) 1.5 B) 2.4 C) 1.6 D) 2.0 2) Nicole holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0. If Inicole sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be A) 0.60 B) 0.88 C) 1.00 D) 1.25 You are going to invest $20,000 in a portfolio consisting of assets X, Y. and Z, as follows: Probability Annual Retum 10 8 16" Beta 1.2 Proportion 0.333 0.333 0.333 0.25 0.25 1.6 20 3) Given the information in the above table, what is the expected annual return of this portfolio? A) 11.4% B) 10.0% C) 11.0% D) 11.7% 4) The beta of the portfolio in the above table, containing assets X, Y, and Z is A) 1.5 B) 2.4 C) 1.6 D) 2.0