What is the beta of an equally-weighted portfolio containing stocks with betas of 1.4, 0.9, and 1.7?
Please show formula and written work (if possible), thank you!
Weight of each=(1/3)
Portfolio beta=Respective beta*Respective weight
=(1/3*1.4)+(1/3*0.9)+(1/3*1.7)
which is equal to
=1.33(Approx).
What is the beta of an equally-weighted portfolio containing stocks with betas of 1.4, 0.9, and...
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