You have a $41,000 portfolio consisting of Intel, GE, and Con Edison. You put $22,800 in...

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You have a $41,000 portfolio consisting of Intel, GE, and Con Edison. You put $22,800 in Intel, $8,400 in GE, and the rest in

Answer 1

Answer #1

Value in con edison = 41,000 - 22,800 - 8,400 = 9,800

Portfolio beta = (22,800 / 41,000 )*1.3 + (8,400 / 41,000)*1 + (9,800 / 41,000)*0.8

Portfolio beta = 0.722927 + 0.204878 + 0.19122

Portfolio beta = 1.119

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Answer 2

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