You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R,
ID: 2708282 • Letter: Y
Question
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.83, 1.21, 1.22, and 1.39, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))
help and show work if possible
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.83, 1.21, 1.22, and 1.39, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))
Explanation / Answer
Portfolio beta= 0.83*35% + 1.21*25% + 1.22*25% + 1.39*15% = 1.1065
Answer: Portfolio beta= 1.11