Answer:
Beta= 1.17
Explanation:
Giving the following information:
Shirley Paul's 2-stock portfolio has a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.
To calculate the Beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (37,500/100,000)*0.75 + (62,500/100,000)*1.42
Beta= 1.17
