Assume you have the following portfolio. STOCK STOCK WEIGHT BETA Apple 39 % 1.58 Green Mountain...

Assume you have the following portfolio.

STOCK	STOCK WEIGHT	BETA
Apple	39 %	1.58
Green Mountain Coffee	22 %	1.39
Disney	27 %	1.18
Target	12 %	1.29

What is the portfolio's beta?

Expert Solution

Ans portfolio's beta = 1.40

Stock	Stock Weight	Beta	Stock weight* Beta
Apple	39%	1.58	0.62
Green Mountain Coffee	22%	1.39	0.31
Disney	27%	1.18	0.32
Target	12%	1.29	0.15
	Total	5.44	1.40

jeff jeffy answered 1 year ago

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