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
Please show work
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The portfolio beta is the weighted average of the individual fund beta. What we are given
International fund - weight = 20%, beta = 1.5
The solution explains how to calculate the percentage of investment given the portfolio beta