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In: Finance

You have a portfolio that is invested 13 percent in Stock A, 52 percent in Stock...

You have a portfolio that is invested 13 percent in Stock A, 52 percent in Stock B, and 35 percent in Stock C. The betas of the stocks are .82, 1.37, and 1.66, respectively. What is the beta of the portfolio?

Solutions

Expert Solution

Ans 1.40

Stock BETA Investment % Beta * Investment
A          0.82 13%                                      0.11
B          1.37 52%                                      0.71
C          1.66 35%                                      0.58
Total                                      1.40

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