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Abrams builds a portfolio by investing in two stocks only: Samsung (SMSN) and Huawei (SHE)....

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Finance

Abrams builds a portfolio by investing in two stocks only: Samsung (SMSN) and Huawei (SHE). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of SMSN is 13.48% and the expected risk premium of SHE is 6.81%. The beta of SMSN is equal to 1.16. If Abrams puts 69% of his money in SMSN stock and 31% in SHE stock, what is the approximate beta of his portfolio?

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