Martin Ortner Holds a $200,000 Portfolio Consisting of the Following

Martin Ortner holds a $200,000 portfolio consisting of the following stocks:



$\begin{array}{lccc}\text { Stock} & \text { Investment}& \text { Beta} \\\mathrm{A} & \$ 50,000 &0.95\\\mathrm{B} & 50,000 &0.80\\\mathrm{C} & 50,000&1.00 \\\mathrm{D} & 50,000&1.20 \\\text { Total }& \$ 200,000\end{array}$

What is the portfolio's beta?

A) 0.938
B) 0.988
C) 1.037
D) 1.089
E) 1.143

Correct Answer:

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