Beta if a portfolio. the beta of four stocks G, H, I and J are 0.47,...

Beta if a portfolio. the beta of four stocks G, H, I and J are 0.47, 0.87, 1.18 and 1.65, respectively. what is the beta of a portfolio with the following weights in each asset?

                  weightG.   weight H weight I   weight J
portfolio 1. 25%            25%            25%         25%
portfolio 2. 30%            40%            20%         10%
portfolio 3. 10%            20%            40%         30%

what is the beta of portfolio 1?

Expert Solution

Ans 1.04

Stock	Beta	Weight- Portfolio 1	Return * Investment
G	0.47	25%	0.118
H	0.87	25%	0.218
I	1.18	25%	0.295
J	1.65	25%	0.413
		Total	1.043

jeff jeffy answered 1 year ago

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