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8 March, 20:18

Your portfolio is comprised of 36 percent of Stock X, 18 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.19, Stock Y has a beta of. 87, and Stock Z has a beta of 1.26. What is the beta of your portfolio?

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  1. 8 March, 20:37
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    Portfolio's beta: 1.16

    Explanation:

    Stock Percent Beta Weighted Beta

    X 36% 1,19 0,43

    Y 18% 0,87 0,16

    Z 46% 1,26 0,58

    1,16

    The portfolio beta is obtained by the sum of the individual betas of each stock considering it's percent on the portfolio (weighted beta).

    It represents the relative volatility of a portfolio relative to the market. More than one means more volatile and less than one means less volatile than the market.
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Home » Business » Your portfolio is comprised of 36 percent of Stock X, 18 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.19, Stock Y has a beta of. 87, and Stock Z has a beta of 1.26. What is the beta of your portfolio?
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