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A portfolio has three stocks: Expected Investment Beta Return Coca-Cola 18% $150,000 1.20 Glaxo 14% $150,000 1.00 Smith Kline 12% $300,000 0.80 $600,000 a. The
A portfolio has three stocks:
| Expected | Investment | Beta | |
| Return | |||
| Coca-Cola | 18% | $150,000 | 1.20 |
| Glaxo | 14% | $150,000 | 1.00 |
| Smith Kline | 12% | $300,000 | 0.80 |
| $600,000 | |||
a. The portfolio's beta is:
b. What does this figure mean for the investor?
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
