An investor has $100,000 to invest. If she invests 30% in Stock A, 40% in Stock B, and the remainder in a market index exchange-traded fund (ETF), calculate the investor's portfolio beta. Beta
Stock A 0.75
Stock B 1.4
The appropriate measure of risk for all investors is how the return on an individual stock moves with the returns of other assets in the portfolio. Which of the following best describes this
relationship?
a. covariance
b. correlation
c. beta
d. standard deviation
