Homework Answers
Portfolio beta=Summation of (Stock weight)*(Beta of the stock)
Portfolio
beta=(37%)*(1.57)+(22%)*(1.36)+(31%)*(1.14)+(10%)*(1.29)
=0.5809+0.2992+0.3534+0.129
=1.3625 or 1.36 (Rounded to two decimal places)
So, the portfolio beta is 1.36.
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