Question
Determine the beta of a portfolio consisting of the following common stocks: Hint: the beta of a portfolio equals the weight average average for each
Determine the beta of a portfolio consisting of the following common stocks:
Hint: the beta of a portfolio equals the weight average average for each individual stock beta.
| Security Boeing | Market Value $5,000 | Beta 1.2 |
| Exxon | $4,000 | 0.8 |
| Duke Power | $2,500 | 0.6 |
| Blockbuster Video | $2,000 | 1.4 |
| Coca-Cola | $7,500 | 1.0 |
| a. 1.00 |
| b. 1.14 |
| c. 0.93 |
| d. 0.85 |
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
