Question
5. What is the beta of a portfolio consisting of one share of each of the following stocks, given their respective prices and beta coefficients?
5. What is the beta of a portfolio consisting of one share of each of the following stocks, given their respective prices and beta coefficients?
| Stock | Price | Beta |
| A | $10 | 1.4 |
| B | $24 | 0.8 |
| C | $41 | 1.3 |
| D | $19 | 1.8 |
How would the portfolio beta differ if (a) the investor purchased 200 shares of stocks B and C for every 100 shares of A and D and (b) equal dollar amounts were invested in each stock?
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Innovation And Technology
Authors: Nikos Vernardakis
1st Edition
0415676800, 978-0415676809
