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What is the approximate beta of portfolio

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Abrams builds a portfolio by investing in two stocks only: Google (GOOG) and Nokia (NOK). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of GOOG is 12.13% and the expected risk premium of NOK is 5.88%. The beta of GOOG is equal to 1.07. If Abrams puts 73% of his money in GOOG stock and 27% in NOK stock, what is the approximate beta of his portfolio?

Reference no: EM132679085

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