Question

In: Finance

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

Solutions

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

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