Question
You are analyzing a portfolio of stocks that have the following: Stock Weight Return Beta XOM 0.20 15% 1.5 MSFT 0.50 12% 1.25 LUV 0.15
You are analyzing a portfolio of stocks that have the following:
| Stock | Weight | Return | Beta |
| XOM | 0.20 | 15% | 1.5 |
| MSFT | 0.50 | 12% | 1.25 |
| LUV | 0.15 | 8% | 0.85 |
| CAT | 0.15 | 6% | 0.45 |
Calculate the standard deviation in your portfolio. Next, calculate the average beta in your portfolio. Is your portfolio more or less risky than the market?
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Computational Finance And Its Applications
Authors: C. A. Brebbia, M. Costantino
1st Edition
1853127094, 978-1853127090
