Based on the betas of each asset and the amount invested in them by Nico, the portfolio beta would be 1.10.
What is the portfolio beta?
It is a weighted amount that is based on the individual asset betas.
Nico invested equally in each asset so there is a weight of 50% to either of them.
The portfolio beta is:
= (Weight of x × Beta of x) + (Weight of y × Beta of y)
= (50% x 0.60) + (50% x 1.60)
= 1.10
Find out more on portfolio beta at https://brainly.com/question/14986133.
