Based on the following information, what is the portfolio beta? Stock Value Beta A $47570...

Based on the following information, what is the portfolio beta?

Stock	Value	Beta
A	$47570	1.14
B	$25106	1.88
C	$30608	0.72
D	$30787	3.38

Expert Solution

Ans 1.6971 or 1.70 rounded off

Stock	Beta	Value	Value * Beta
A	1.14	47,570	54,230
B	1.88	25,106	47,199
C	0.72	30,608	22,038
D	3.38	30,787	1,04,060
	Total	1,34,071	2,27,527


Average Beta =	(Value * Beta) / Total Value
	227527 / 134071
	1.6971

jeff jeffy answered 2 years ago

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