Question
1.You have $80,000 to invest in stocks.You select 2 stocks:A & B.Stock A has a beta of .6, so you invest $60,000 in it.The remainder
1.You have $80,000 to invest in stocks.You select 2 stocks:A & B.Stock A has a beta of .6, so you invest $60,000 in it.The remainder you put in Stock B which has a beta of 1.5.What is the beta of your stock portfolio (Ch 5)?
2.Similar to problem 1:you have $60,000 to invest.You put $30,000 in GAP stocks (beta of 1.8); $15,000 in Chesapeake Utilities (beta of .8); $15,000 in Anheuser-Busch (beta of .6).What is you portfolio beta?
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
