The beta of a portfolio is the weighted average of the betas of all of the assets in the portfolio.
True
False
Answer: true
Reason: a portfolio is a combination of different assets and each asset has a beta so beta of a portfolio is weighted average beta of individual stock
The beta of a portfolio is the weighted average of the betas of all of the...
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!
You are forming an equally weighted portfolio of stocks. Many stocks have the same beta of 0.84 for Factor 1 and the same beta of 1.69 for Factor 2. All stocks also have the same expected return of 11 percent. Assume a two-factor model describes the return on each of these stocks. a) Write the equation of the returns on your portfolio if you place only five stocks in it. b) Write the equation of the returns on our portfolio...
You construct a portfolio out of 4 assets. The betas of the assets are 1, 0.5, 1.9, and 0.9, and the respective weights of the assets in your portfolio are 20%, 15%, 35%, and 30%. What is the beta of your portfolio? (please round to 2 decimal places ) If the expected market return the next year is 9% and the risk-free rate is 4%, what is the expected return of your portfolio that year? (please round to the nearest...
Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are . 78, 87, 1.13, and 1.45, respectively. What is the portfolio beta? Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.29 and the total portfolio is...
2 risky Stocks A and B are weighted 20% and 80% respectively. If the beta for stock A is 1.2 what are the betas for the market portfolio and stock B (assume also a risk free stock)
11. Award: 7.69 points Problem 13-11 Calculating Portfolio Betas (L04) You own a stock portfolio invested 20% in Stock Q, 35% in Stock R, 20% in Stock S, an 25% in Stock T. The betas for these four stocks are 0.84, 1.17, 1.08, and 1.36, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Portfolio beta References Worksheet Problem 13-11 Calculating Portfolio Betas (L04) Learning Objective: 13-04 Beta as a...
Calculating Portfolio Betas - You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 35 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .84, 1.17, 1.08, and 1.36, respectively. What is the portfolio beta?
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...
5. Discuss whether the standard deviation ofa portfolio is, or is not, a weighted average of the standard deviations of the assets in the portfolio. Fully explain your answer.