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in your two-stock portfolio, you invest $25 in stock a and $75 in stock B. if...

in your two-stock portfolio, you invest $25 in stock a and $75 in stock B. if the beta of stock A is 1.31 and the beta of stock b is 1.39 your portfolio wold be:

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Ans 1.37

Stock INVESTMENT (i) Beta (ii) Investment* Beta (i)* (ii)
A                                 25                      1.31                                                  32.75
B                                 75                      1.39                                               104.25
Total                               100                                               137.00
AVERAGE BETA = (INVESTMENT * BETA) / TOTAL INVESMENT
137 / 100
1.37

jeff jeffy answered 2 years ago
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