You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R,...

You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 15 percent in Stock S, and 45 percent in Stock T. The betas for these four stocks are 1.36, 1.7, 1.3, and 0.48, respectively. What is the portfolio beta?

Expert Solution

Ans 1.01

Stock	INVESTMENT (i)	Beta (ii)	Investment* Beta (i)* (ii)
Q	25%	1.36	0.34
R	15%	1.70	0.26
S	15%	1.30	0.20
T	45%	0.48	0.22
Total	100%		1.01

jeff jeffy answered 8 months ago

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