F you purchase the number of shares specified, then the beta of your portfolio will be:

You are thinking about purchasing 1,000 shares of stock in the following firms:

Number of Shares Firm's Beta
Firm A 100 0.75
Firm B 200 1.47
Firm C 200 0.82
Firm D 600 1.60

A) 1.16.
B) 1.35.
C) 1.00.
D) Cannot be determined without knowing the stock prices.

Answer: D

Business

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