A stock portfolio's overall beta is found by multiplying each stock's beta times the percentage of the overall portfolio it makes up and adding these terms together. Since the current portfolio's beta is known, we can treat all the stocks in the portfolio as a single stock for calculating its weight in the new portfolio. Thus, our new portfolio will have a value of $150,000, $100,000, or 2/3, of which has a beta of 1.5 and $50,000, or 1/3, of which has a beta of 3. Then the beta of the new portfolio will be 1.5*(2/3) + 3*(1/3) = 2.
Answer:
Step-by-step explanation:
Given that a box has cards numbered 1 ,2,3
Also a bag has three balls labelled A, B and C
Sample space = {(1,A)(1,B)(1,C) (2,A)(2,B)(2,C)} n(S) = 9
Mary will randomly pick up a card from the 3 cards and also pick up a ball from the bag of 3 balls.
The sample space contains the combination of letter on the card and number on the ball.
Event that the number chosen is 1 is
{(1,A)(1,B)(1,C)}: n(event of choosing 1)=3
The answer to the question is the third one
