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Your initial stock portfolio consists of $15,000 worth of US-based corporations with an average beta of 1.5, and $5,000 worth of emerging market corporations with

Your initial stock portfolio consists of $15,000 worth of US-based corporations with an average beta of 1.5, and $5,000 worth of emerging market corporations with an average beta of 3.

a. What is the beta of your initial portfolio?

b. You received a $10,000 cash bonus from your day job and decide to invest it in some lower risk assets with an average beta of 0.5. What is the beta of your new portfolio?

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