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Kate has $100,000 invested in a two-stock portfolio. Thirty thousand dollars is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation.

Kate has $100,000 invested in a two-stock portfolio. Thirty thousand dollars is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation. Potts' beta is 1.60 and Stohs' beta is 0.60. What is the portfolio's beta?

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Lets calculate the weights first Potts Manufacturing 30000 100000 03 or 30 since 30000 is 30 o... blur-text-image

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