1. Portfolio Beta You have a portfolio with a beta of 2.44. What will be the new portfolio beta if you keep 10 percent of your money in the old portfolio and 90 percent in a stock with a beta of 2.69?
2.665
1.00
5.13
2.565
2. Portfolio Beta You own $1,600 of City Steel stock that has a beta of 1.63. You also own $6,300 of Rent-N-Co (beta = 1.93) and $5,300 of Lincoln Corporation (beta = 1.03). What is the beta of your portfolio (closest to)?
1.53
1.00
3.24
4.59