Homework Answers
| Stock | Total value=(Stock price*Shares) | Beta |
| A | (40.25*600)=24150 | 0.25 |
| B | (22.36*500)=11,180 | 2.5 |
| C | (58*600)=34800 | 1.15 |
| D | (125.65*500)=62825 | 1.5 |
| Total value=132955 |
Portfolio beta=Respective beta*Respective investment weight
(24150/132955*0.25)+(11180/132955*2.5)+(34800/132955*1.15)+(62825/132955*1.5)
=1.27(Approx).
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