An investment banker has recommended a $100,000 portfolio consisting of assets B, D, & F. $20,000...

An investment banker has recommended a $100,000 portfolio consisting of assets B, D, & F. $20,000 will be invested in asset B with a beta of 1.5; $50,000 will be invested in asset D with a beta of 2.0; and $30,000 will be invested in asset F with a beta of 0.5. The beta of this portfolio is:

Expert Solution

Portfolio Beta is 1.45
Particulars	Investment	Weight	Beta	Portfolio Beta
Stock B	20,000.00	0.20	1.50	0.30
Stock D	50,000.00	0.50	2.00	1.00
Stock F	30,000.00	0.30	0.50	0.15
	100,000.00	1.00		1.45

jeff jeffy answered 2 years ago

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