You have a $50000 portfolio consisting of Intel, GE, and Con Edison. You put $17000 in...

You have a $50000 portfolio consisting of Intel, GE, and Con Edison. You put $17000 in Intel, $15000 in GE, and the rest in Con Edison. Intel, GE, and Con Edison have betas of 1.3, 0.9, and 0.8, respectively. What is your portfolio beta?

		1.000
		1.300
		0.984
		0.696

Expert Solution

Rest in Con Edison=50,000-(17000+15000)=$18000

Portfolio beta=Respective beta*Respective weight

=(17000/50,000*1.3)+(15000/50,000*0.9)+(18000/50,000*0.8)

=1

jeff jeffy answered 2 years ago

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