Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Question

Question

Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of Lululemon stock, which has a beta of 1.4. What is the beta of your portfolio?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Total value = 12,000 + 18,000 = $30,000

Beta = (12,000 / 30,000)*1.1 + (18,000 / 30,000)*1.4

Beta = 0.44 + 0.84

Beta = 1.28

Add a comment

Answer 2

Similar Homework Help Questions

Stock A has a beta of 1.1 and an expected return of 10.2%, Stock B has...

Stock A has a beta of 1.1 and an expected return of 10.2%, Stock B has a beta of 1.4 and an expected return of 12.0%. If the risk-free rate is 3% and the market risk premium is 7%, which should you add to a portfolio with a beta of 0.8? a. Stock A b. Stock B c. Both d. Neither
your client has a portfolio of $2000 invested in stock A, which has a beta of...

your client has a portfolio of $2000 invested in stock A, which has a beta of 1.50 and $5000 in stock B, which has a beta of 0.70. the market risk premium is 2% and the risk free is 2%. what is the required rate of return on the investors portfolio?
SHOW WORK PLEASE Complete problem: Portfolio Beta You have a $4 million portfolio consisting of a...

SHOW WORK PLEASE Complete problem: Portfolio Beta You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions? Show your work.

A portfolio exists that contains equal weights of Five securities: A stock with a beta of...

A portfolio exists that contains equal weights of Five securities: A stock with a beta of 1.5, B stock with a beta of 2.0, C stock with a beta of -0.8, Dis a US Treasury Bond, and E is a security that tracks the market exactly. What is the beta of this portfolio? What is the expected return of the A stock from the question assuming the Treasury Bond has a 1.72% yield and the expected return of the market...
An investor is forming a portfolio by holding $8,000 in stock A, which has a beta...

An investor is forming a portfolio by holding $8,000 in stock A, which has a beta of 1.50, and $5,000 in stock B, which has a beta of 0.92. Find portfolio beta.
You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has...

You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has a beta of 0.3, and Stock C has a beta of 2.2. If 0% of your portfolio is invested in stock A, and 0% of your stock is invested in Stock B, what is your portfolio beta? (Enter your response to two decimal places ex: 1.23)

You form a portfolio of stocks. Stock A has a beta of 0.9, Stock B has...

You form a portfolio of stocks. Stock A has a beta of 0.9, Stock B has a beta of 1.8, and Stock C has a beta of 1.3. If 13% of your portfolio is invested in stock A, and 45% of your stock is invested in Stock B, what is your portfolio beta? (Enter your response to two decimal places ex: 1.23)
(LGI0-3) 10-22 Portfolio Beta You own $7,000 of Human Genome stock that has a beta of...

(LGI0-3) 10-22 Portfolio Beta You own $7,000 of Human Genome stock that has a beta of 3.5. You also own $8,000 of Frozen Food Express (beta = 1.6) and $10,000 of Molecular Devices (beta 0.4). What is the beta of your portfolio? (LG10-3) 10-28 Portfolio Beta and Required Return You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent,...
Suppose that you have a portfolio worth $100,000 which contains only two stocks. If one stock...

Suppose that you have a portfolio worth $100,000 which contains only two stocks. If one stock is valued at $65,000 and has a beta of .70 while the other stock has a beta of 1.2, what is the portfolio beta? 0.865 0.980 0.875 0.765 0.838

A portfolio contains equal investments in 10 stocks. Five have a beta of 1.4; the remainder...

A portfolio contains equal investments in 10 stocks. Five have a beta of 1.4; the remainder have a beta of .9. What is the portfolio beta?

Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Homework Answers

Add Answer to:
Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Post as a guest

Earn Coins

Stock A has a beta of 1.1 and an expected return of 10.2%, Stock B has...

your client has a portfolio of $2000 invested in stock A, which has a beta of...

SHOW WORK PLEASE Complete problem: Portfolio Beta You have a $4 million portfolio consisting of a...

A portfolio exists that contains equal weights of Five securities: A stock with a beta of...

An investor is forming a portfolio by holding $8,000 in stock A, which has a beta...

You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has...

You form a portfolio of stocks. Stock A has a beta of 0.9, Stock B has...

(LGI0-3) 10-22 Portfolio Beta You own $7,000 of Human Genome stock that has a beta of...

Suppose that you have a portfolio worth $100,000 which contains only two stocks. If one stock...

A portfolio contains equal investments in 10 stocks. Five have a beta of 1.4; the remainder...

Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Homework Answers

Add Answer to: Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...

Post as a guest

Earn Coins

Add Answer to:
Your portfolio contains $12,000 of BMO stock, which has a beta of 1.1, and $18,000 of...