Ask Question
2 January, 09:25

You own a stock portfolio invested 25 percent in Stock Q, 35 percent in Stock R, 35 percent in Stock S, and 5 percent in Stock T. The betas for these four stocks are 1.6, 0.5, 1.7, and 0.8, respectively. What is the portfolio beta

+1
Answers (1)
  1. 2 January, 11:22
    0
    1.57

    Explanation:

    The computation of portfolio beta is shown below:-

    Stock Stock % Beta (%) Weighted Beta (%)

    Q 0.25 1.6 0.4

    R 0.35 0.5 0.175

    S 0.35 1.7 0.595

    T 0.5 0.8 0.4

    Total 1.57

    To Reach the weighted beta we simply multiply the stock percentage with beta.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You own a stock portfolio invested 25 percent in Stock Q, 35 percent in Stock R, 35 percent in Stock S, and 5 percent in Stock T. The betas ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers