A portfolio beta is the weighted average beta of its stocks/assets,
Portfolio A Beta:
Portfolio B Beta:
a. The beta of porfolio A is 0.929 , the beta of portfio B is 1.115
b. Portfolio A is slightly less risky than market, while portfolio B is more risky than the market. Portfolio B's return will move more than portfolio A's for a given increase or decrease
Portfolio B is the more risky portfio.
Jeanne Lawis is attampting to avaluata two possible portfolios consisting of the same five assets but...
Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: a. Calculate the betas for portfolios A and B. b. Compare the risk of each portfolio to the market as well as to each other. Which portfolio is more risky? (Round to three decimal places.) a. The...
Jeanne Lewis is attempting to evaluate two poss ble portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data a. Cakulale the betas for prfclios A and B b. Compare the risk ot each pcrttolio to the market as well as to cach other Which portolio is more risky? a. The beta at portfolio A...
Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data Portfolio Weights Asset Asset Beta Portfolio A Portfolio B 1 1.33 12% 31% 2 0.71 33% 11% 3 1.23 10% 25% 4 1.15 5% 17% 5 0.86 40% 16% Total 100% 100% a. Calculate the betas for...
(Round answer to three decimal places) Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: a. Calculate the betas for portfolios A and B. b. Compare the risk of each portfolio to the market as well as to each other. Which portfolio is more risky? i...
Please note, the drop down boxes contain A and B which represents the portfolio Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portiolios and. in this regard, has gathered the following data: EEE a. Calculate the betas for potfolios A and B b. Compare the risk of Bach portfolio to the market as well as...
Jason Jackson is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. He is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: Portfolio Weights Asset Asset Beta Port- A Port-B 1 1.32 19% 35% 2 0.74 29% 11% 3 1.29 10% 16% 4 1.06 10% 24% 5 0.92 ...
QUESTION 1 (15 MARKS) Jeanne is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolio and, in this regard, has gathered the following data: Portfolio Weights (%) Asset Beta Portfolio Portfolio B 1.30 0.70 1.25 1.10 0.90 20 NO 10 10 40 Total 100 100 Required: a) Calculate the betas for portfolios A and B. marks) (CL01:PLO2:01) Compare...
Rose Berry is attempting to evaluate 2 possible portfolios, which consist of the same 5 assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: Portfolio Weights Asset Asset beta Portfolio A Portfolio B 1 1.30 10% 30% 2 .70 30 10 3 1.25 10 20 4 1.10 10 20 5 .90 40 20 Totals 100% 100% a. Calculate the...
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...