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Your portfolio contains Stocks X and Y with the following dollar amount of investments: Stock X Y Investment $8,000 $12,000 The portfolio has a beta

Your portfolio contains Stocks X and Y with the following dollar amount of investments:

Stock

Investment

$8,000

$12,000

The portfolio has a beta of 2.0. If you add Stock Z into your portfolio with an investment of $40,000, what is the beta of your new portfolio if Stock Z has a beta equal to .5?

Select one:

a. 0.5

b. 1

c. 1.3

d. 0

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