You have a $100,000 portfolio consisting only of Facebook, Netflix, and Tesla stocks. You put $30,000...

You have a $100,000 portfolio consisting only of Facebook, Netflix, and Tesla stocks. You put $30,000 in Facebook, $20,000 in Netflix, and the rest in Tesla. Their respective betas are 1.2, 1.1, and 0.9. Your portfolio beta is .

Please enter your answer with TWO decimal points.

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Expert Solution

Calculation of portfolio beta:

Particulars	Amount invested	Proportion (1)	Beta (2)	Portfolio Beta (3) (1*2)
Facevalue	30,000	30,000/100,000=0.3	1.2	0.36
Nerflix	20,000	20,000/100,000=0.2	1.1	0.22
Tesla	50,000	50,000/100,000=0.5	0.9	0.45
	100,000		Portfolio Beta	1.03

Portfolio Beta = 1.03

jeff jeffy answered 2 years ago

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