What is the Beta of a three-stock portfolio including 25% of Stock A with a Beta of .90, 40% Stock B with a Beta of 1.25

What is the Beta of a three-stock portfolio including 25% of Stock A with a Beta of .90, 40% Stock B with a Beta of 1.25, and 35% Stock C with a Beta of 1.3?

		1.05
		1.25
		1.18
		1.22

Expert Solution

Ans 1.18

Stock	Investment (i)	Beta (ii)	Investment* Beta (i)* (ii)
A	25.00%	0.90	0.23
B	40.00%	1.25	0.50
C	35.00%	1.30	0.46
		Total	1.18

jeff jeffy answered 2 years ago

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