Approximate beta of portfolio-spielberg builds

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Spielberg builds a portfolio by investing in two stocks only: Microsoft (MSFT) and Huawei (SHE). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of MSFT is 10.21% and the expected risk premium of SHE is 6.7%. The beta of MSFT is equal to 1.12. If Spielberg puts 75% of his money in MSFT stock and 25% in SHE stock, what is the approximate beta of his portfolio?

Reference no: EM132548283

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