Question
The beta of four stockslong -G, H, I, and Jlong dashare 0.41, 0.85, 1.24, and 1.56, respectively. What is the beta of a portfolio with
The beta of four stockslong -G, H, I, and Jlong dashare 0.41, 0.85, 1.24, and 1.56, respectively. What is the beta of a portfolio with the following weights in each asset?
| Weight in Stock G | Weight in Stock H | Weight in Stock I | Weight in Stock J |
| |||||
| 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?
What is the beta of portfolio 2?
What is the beta of portfolio 3?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
