CUENCIENT or variation, and snarpe ratio. 8-2 PORTFOLIO BETA An individual has $20,000 invested in a...

Question

Question

CUENCIENT or variation, and snarpe ratio. 8-2 PORTFOLIO BETA An individual has $20,000 invested in a stock with a beta of 0.6

Answer 1

Answer #1

Weight of stock 1 =20000/95000 =0.21

Weight of stock 2 =75000/95000 =0.79

Portfolio beta=(0.21*0.6)+(0.79*2.5) =2.10

Answer 2

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