Question
Suppose you are the money manager of a $200 million investment fund. The fund consists of three stocks with the following investments and betas: Stock
Suppose you are the money manager of a $200 million investment fund. The fund consists of three stocks with the following investments and betas:
Stock Investment Beta
X $ 40 million 0.80
Y $ 60 million 1.00
Z $200 million 1.30
The beta of the fund is:
| A. | 1.110 | |
| B. | 1.173 | |
| C. | 0.985 | |
| D. | 1.080 | |
| E. | None of the above |
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Public Finance
Authors: Harvey S Rosen, Ted Gayer
9th International Edition
0071267883, 9780071267885
