Question
An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks is shown in the table below: Stock Expected Return Beta
An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks is shown in the table below:
| Stock | Expected Return | Beta | Amount Invested |
|---|---|---|---|
| A | 9.00% | 1.00 | $1,736.00 |
| B | 10.00% | 1.20 | $2,534.00 |
| C | 6.50% | 0.70 | $2,984.00 |
| D | 8.00% | 0.90 | $896.00 |
| E | 12.00% | 1.40 | $1,850.00 |
Also, the risk free rate for the economy is currently 3.00%.
What is the beta for this portfolio?
Submit
Answer format: Number: Round to: 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
