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What is the approximate beta of portfolio

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Lucas 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 8.77% and the expected risk premium of SHE is 5.64%. The beta of MSFT is equal to 1.45. If Lucas puts 66% of his money in MSFT stock and 34% in SHE stock, what is the approximate beta of his portfolio?

Reference no: EM133072793

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