question archive Spielberg builds a portfolio by investing in two stocks only: Google (GOOG) and Huawei (SHE)

Spielberg builds a portfolio by investing in two stocks only: Google (GOOG) and Huawei (SHE)

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Spielberg builds a portfolio by investing in two stocks only: Google (GOOG) and Huawei (SHE). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of GOOG is 9.77% and the expected risk premium of SHE is 5.12%. The beta of GOOG is equal to 1.05. If Spielberg puts 69% of his money in GOOG stock and 31% in SHE stock, what is the approximate beta of his portfolio? 

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