The table below shows the betas and portfolio weights for 3 stocks:

		Portfolio weights
Stock	Beta	Portfolio 1	Portfolio 2
A	1.7	0.3	0.1
B	1.1	0.5	0.4
C	0.3	0.2	0.5

Calculate the beta of each portfolio.

Part 1

What is the beta of portfolio 1?

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Part 2

What is the beta of portfolio 2?

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Part 3

If you are more concerned about risk than return, which portfolio should you pick?

Portfolio 2

Portfolio 1