In: Finance

# You own a stock portfolio invested 30 percent in stock Q, 20 percent in stock R,...

You own a stock portfolio invested 30 percent in stock Q, 20 percent in stock R, 35 percent in stock S, and 15 percent in stock T. The bestas for these four stocks are .85 1.18, 1.02, and 1.20, respectively. what is the portfolio beta?

## Solutions

##### Expert Solution

Ans 1.03

 Stock Probability (i) BETA(ii) PROBABILITY* RETURN (i)* (ii) Q 30.00% 0.85 0.26 R 20.00% 1.18 0.24 S 35.00% 1.02 0.36 T 15.00% 1.20 0.18 Total 1.03

## Related Solutions

##### You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R,...
You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.12, 0.69, 1.16, and 1.69, respectively. What is the portfolio beta?
##### You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R,...
You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 5 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 0.8, 1.05, 1.55, and 0.65, respectively. What is the portfolio beta?