What is the beta for the following portfolio? Stock Investment 16,000 7,500 9,000 15,000 11.500 Beta 0.65 0.85 1.25...

Question

Question

Answer 1

Answer #1

Beta of a portfolio is the weighted average of betas of stocks of the portfolio

Weights of each stock

= Value of investment in the stock / Value of total portfolio

This has been calculated in the following table :

So, as per above calculations, the beta of the portfolio is 0.98

Answer 2

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