Question
You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A, $6,000 in stock B, and $1,000
You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A, $6,000 in stock B, and $1,000 in stocks C and D. Given the information regarding each stocks Beta in the table below, compute the portfolio beta.
| Stock | Beta |
| A | -0.6 |
| B | 1.9 |
| C | 1 |
| D | 1.2 |
| 1.06 | ||
| 0.88 | ||
| -0.02 | ||
| 1.27 |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077261453, 978-0077261450
