An individual has $15,000 invested in a stock with a beta of 0.5 and another $60,000...

An individual has $15,000 invested in a stock with a beta of 0.5 and another $60,000 invested in a stock with a beta of 1.3. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

Expert Solution

Ans 1.14

Stock	INVESTMENT (i)	Beta (ii)	Investment* Beta (i)* (ii)
1	15,000	0.50	7,500.00
2	60,000	1.30	78,000.00
Total	75,000		85,500


AVERAGE BETA =	(INVESTMENT * BETA) / TOTAL INVESMENT
	85500 / 75000
	1.14

jeff jeffy answered 1 year ago

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