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An individual has $30,000 invested in a stock with a beta of 0.4 and another $75,000...

An individual has $30,000 invested in a stock with a beta of 0.4 and another $75,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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Answer #1

Total investment 30000 + 75000 105000 30000 105000 1o5ooo W, = weight of stock, W2= weight of stockz = 75000 ßi= 0.4 ß2= 2.0

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