A portfolio is comprised of the following stocks. What is the portfolio beta? Stock Market Value...

Question

Question

A portfolio is comprised of the following stocks. What is the portfolio beta?

Answer 1

Answer #1

Portfolio beta is equal to weighted average beta

= 2.04*19000/48,600 + 1.08*20,000/48,600 + 1.21*9600/48600

= 1.48098

i.e. 1.48

Answer 2

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