Ask Question
30 March, 15:33

You own a stock portfolio invested 28 percent in Stock Q, 16 percent in Stock R, 42 percent in Stock S, and 14 percent in Stock T. The betas for these four stocks are. 97, 1.03, 1.43, and 1.88, respectively. What is the portfolio beta

+2
Answers (1)
  1. 30 March, 17:21
    0
    Beta = 1.3002

    Explanation:

    Giving the following information:

    You own a stock portfolio invested 28 percent in Stock Q, 16 percent in Stock R, 42 percent in Stock S, and 14 percent in Stock T. The betas for these four stocks are. 97, 1.03, 1.43, and 1.88, respectively.

    To calculate the beta of the portfolio, we need to use the following formula:

    Beta = (proportion of investment A*beta A) + (proportion of investment B*beta B) + ... + (proportion of X*bet X)

    Beta = (0.28*0.97) + (0.16*1.03) + (0.42*1.43) + (0.14*1.88)

    Beta = 1.3002
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You own a stock portfolio invested 28 percent in Stock Q, 16 percent in Stock R, 42 percent in Stock S, and 14 percent in Stock T. The ...” 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