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You are only looking to have a three - stock portfolio. You have $ 1 0 0 , 0 0 0 to invest and you

You are only looking to have a three-stock portfolio. You have $100,000 to invest and you have
already selected two stocks: Ford with a beta of 1.20 you invest $20,000 in Ford and Macys
with a beta of 2.11 you also invested $20,000 in Macys. For your last selection you have a
couple to choose from: Disney with a beta of 1.20, the Boston Beer Company (Sam Adams) with
a beta of 0.73 and Boeing with a beta of 1.83. You would like the overall beta of your portfolio to
be as close to the market or average stock as possible. Make your third selection and
calculate the beta of your three-stock portfolio. Show the formula and the work!

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