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Assume that on 10/23/2020 your portfolio consists of 300 shares of Alaska Air Group (ALK) at $41.57, 350 shares of Best Buy (BBY) at $118.24,
Assume that on 10/23/2020 your portfolio consists of 300 shares of Alaska Air Group (ALK) at $41.57, 350 shares of Best Buy (BBY) at $118.24, and 500 shares of Ford Motor (F) at $8.16. The betas () of each are ALK: 1.7, BBY: 1.8, and F: 1.3.
A. What are the portfolio weights for each stock?
B. What is the beta of your portfolio? (See formula 8.15 in your text, which is: P = wii)
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