Here is a portfolio with three stocks. The table below shows the weights and betas of those three stocks.

	Weight	Beta
I	50%	2.10
II	30%	1.25
III	20%	0.55

Find the beta of the portfolio

• 0.51
• 0.43
• 1.54
• 1.30

Find the standard deviation of a portfolio made up of 50% Stock A and 50% Stock B

Stock	Expected Return	Beta	Standard Deviation	Correlation Coefficient A,B
A	12%	1.3	0.26	0.7
B	13%	1.4	0.25

• 25.50%
• 23.51%
• 6.06%
• 36.04%
• 8.96%