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Suppose an investor has decided to invest $10,000 into Stock X and $10,000 into Stock Y. Stock X has a beta of 1.25 and Stock
Suppose an investor has decided to invest $10,000 into Stock X and $10,000 into Stock Y. Stock X has a beta of 1.25 and Stock Y has a beta of 0.65. Based on the information calculate the portfolio beta. (Round to 4 decimals)
| State | Prob State | Stock X | Stock Y |
| Boom | 20% | 15% | 3% |
| Normal | 40% | 10% | 10% |
| Recession | 30% | -3% | 15% |
| Depression | 10% | -10% | -2% |
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