Homework Answers
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| Beta of portfolio = weighted average beta of each individual stock | |||||
| Computation of beta of portfolio | |||||
| Value | value weight | Beta | Weight * Beta | ||
| Blandy | 1.4 | 70% | 0.7 | 0.49 | |
| Goumange | 0.6 | 30% | 1.4 | 0.42 | |
| 2 | 0.91 | ||||
| Therefore beta of the portfolio = | 0.91 | ||||
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show work
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please do all and show full work. Outliers data pairs Problem 3 (25 Points).- Twenty data...
please do all and show full work.
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< 0.55 21. Your portfolio has a beta of 1.18. The portfolio consists of $3000 in U.S. Treasury bills, $8000 in stock A, and $5500 in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B? 0 Find Total value of portfolio: 1.10 1.24 8000 + 5500 + 3000 = 16, SOO 1.85 2.09 o் ③ Beta portfolio = 1.18= 10 x 3000 16,500) + (1x8000 TES
Seved You hold the positions in the following table. What is the beta of your portfolio? TechNo Comp. Delivery Corp. Computer Corp. Food Corp. Price $ 15.25 $105.00 $ 35.40 $18.75 Shares Beta 2000 4.0 500 1.4 300 0.9 200 -0.7 Multiple Choice O < Prev 7 of 10 Hit Score an Search
please do all and show full work.
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