Answer:
Bp= 1.56
Explanation:
Giving the following information:
You decide to invest $20,500 in Bank of America and $14,500 in Twitter.
Bank of America beta: 1.27 Twitter beta: 1.96
We need to use the following formula:
Bp= Wa*Ba + Wb*Bb
W= weighted average invest
B= beta
Bp= (20,500/35,000)*1.27 + (14,500/35,000)*1.96= 1.56
