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The weights of Ms. Z's portfolio are 30% on stock A, 40% on B and the rest on C. The betas of these stocks are
The weights of Ms. Z's portfolio are 30% on stock A, 40% on B and the rest on C. The betas of these stocks are 1.43, .78, and 1.10, respectively. The standard deviations of the non systematic risks of these stocks are .22, .10, and .16, respectively. The standard deviation of the market's return is .15. What is the beta of Ms. Z's portfolio? What is the variance of her portfolio's total, systematic and non systematic risk?
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