Ask Question
8 February, 01:32

You place half your wealth into tivo stock and the other half into intel bonds. tivo stock's beta = 1.2 and intel bonds' beta is 0.90. calculate the portfolio beta

+4
Answers (1)
  1. 8 February, 02:20
    0
    Weight to wealth in the tivo stock = w1 = 0.5

    Weight to wealth in intel bonds = w2 = 0.5

    Tivo stock beta (beta1) = 1.2

    Intel bond beta (beta2) = 0.90

    Portfolio (beta) = w1beta1 + w2beta2 = 0.5 x 1.2 + 0.5 x 0.9

    The answer is 1.05
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You place half your wealth into tivo stock and the other half into intel bonds. tivo stock's beta = 1.2 and intel bonds' beta is 0.90. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers