You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .95, 1.12, 1.13, and 1.30, respectively. What is the portfolio beta
Darshita Changed status to publish July 26, 2020
Answer:
βP = 1.11
Explaination
βP
= .30 x(.95) + .25 x (1.12) + .25 x (1.13) + .20 x(1.30)
= 1.11
βP = 1.11
Darshita Changed status to publish July 26, 2020
