SOLUTION: Donald Gilmore has $100,000 invested in a 2-stock portfolio. $60,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is

Algebra ->  Finance -> SOLUTION: Donald Gilmore has $100,000 invested in a 2-stock portfolio. $60,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is      Log On


   

Question 1149505: Donald Gilmore has $100,000 invested in a 2-stock portfolio. $60,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?
Select the correct answer.

a. 1.14
b. 1.16
c. 1.20
d. 1.22
e. 1.18


Answer by math_helper(2461) About Me  (Show Source):
You can put this solution on YOUR website!

0.6*1.50 + 0.4*0.70 = 1.18