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    Portfolio Investment Percentage Questions

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    My portfolio which has a beta of 1.14 consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 0.5 and the technology fund has a beta of 1.3. If the portfolio's beta equals 1.14, how much of my portfolio is invested in the technology fund?

    Please choose 1
    A. 50%
    B. 30%
    C. 70%
    D. 40%
    E. 50%

    Please show work


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    Solution Preview

    The portfolio beta is the weighted average of the individual fund beta. What we are given
    International fund - weight = 20%, beta = 1.5
    Utility ...

    Solution Summary

    The solution explains how to calculate the percentage of investment given the portfolio beta