John invested the following amounts in three stocks: Security Investment Beta Stock A $134,061 2.28 Stock...
John invested the following amounts in three stocks: Security Investment Beta Stock A $134,061 2.28 Stock B $856,728 1.90 Stock C $735,080 0.94 Calculate the beta portfolio.
Round the answers to two decimal places.
Homework Answers
Total value = 134,061 + 856,728 + 735,080 = 1,725,869
Beta portfolio = (134,061 / 1,725,869)*2.28 + (856,728 / 1,725,869)*1.9 + (735,080 / 1,725,869)*0.94
Beta portfolio = 0.177104 + 0.943167 + 0.400364
Beta portfolio = 1.52
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