Final answer:
The beta of the portfolio is 1.0625, which is calculated by taking the weighted average beta of the individual stocks in the portfolio.
Step-by-step explanation:
To find the beta of a portfolio, you need to calculate the weighted average beta of the individual stocks in the portfolio. The formula to calculate the beta of a portfolio is:
Beta of Portfolio = (Weight of Stock A * Beta of Stock A) + (Weight of Stock B * Beta of Stock B)
In this case, you invested $5,000 in a stock with a beta of 0.5 and $3,000 in a stock with a beta of 2. So the weighted average beta of the portfolio would be:
Beta of Portfolio = (0.625 * 0.5) + (0.375 * 2) = 0.3125 + 0.75 = 1.0625
Therefore, the beta of the portfolio is 1.0625.