Question
An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.25 $1,765.00 B 1.25 $2,603.00 C 0.74 $1,243.00 The risk-free
An investor plans to invest funds in the following stocks:
| Stock | Beta | Amount Invested |
|---|---|---|
| A | 1.25 | $1,765.00 |
| B | 1.25 | $2,603.00 |
| C | 0.74 | $1,243.00 |
The risk-free rate is currently 5.00%, while the market risk premium is 8.00%.
What is the beta of this portfolio?
Answer format: Number: Round to: 2 decimal places.
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
