Question
Beta of a portfolio . The beta of four stocksP, Q, R, and Sare 0.60, 0.85, 1.20, and 1.35, respectively. What is the beta of
Beta of a portfolio.
The beta of four stocksP, Q, R, and Sare 0.60, 0.85, 1.20, and 1.35, respectively. What is the beta of a portfolio with the following weights in each asset?
| Weight in Stock P | Weight in Stock Q | Weight in Stock R | Weight in Stock S |
| |||||
| Portfolio 1 | 25% | 25% | 25% | 25% | |||||
| Portfolio 2 | 30% | 40% | 20% | 10% | |||||
| Portfolio 3 | 10% | 20% | 40% | 30% | |||||
What is the beta of portfolio 1?
(Round to two decimal places.)
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
