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If you hold a portfolio made up of the following stocks with the indicated amount of investment: Stock Investment Value Beta Stock A $2,000 1.5

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If you hold a portfolio made up of the following stocks with the indicated amount of investment: Stock Investment Value Beta Stock A $2,000 1.5 Stock B $6,000 0.7 Stock C $4,000 1.0 What is the beta of the portfolio? Equal to 1 because the portfolio is well-diversified Greater than 1.1 Cannot be calculated without knowing the market risk premium and risk-free rate Between 0.8 and 1.1 Less than 1 because of diversification

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