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You hold a portfolio of two stocks. The first stock has a beta of .5 and the second stock has a beta of 2.0. You

  1. You hold a portfolio of two stocks. The first stock has a beta of .5 and the second stock has a beta of 2.0. You have invested 75% of your wealth in stock 2. Return on the market portfolio is 20%. The risk-free rate is 5%. The portfolio beta is

    1. 0.500
  2. 0.875
  3. 1.625
  4. 2.051
  5. 2.532

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