In: Finance
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 |
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 |