Ask Question
23 July, 12:28

g An individual has $20,000 invested in a stock with a beta of 0.8 and another $50,000 invested in a stock with a beta of 1.6. If these are the only two investments in her portfolio, what is her portfolio's beta

+3
Answers (1)
  1. 23 July, 12:40
    0
    1.37

    Explanation:

    The computation of the portfolio beta is shown below:

    Value Weight Beta Weighted Beta

    of Investment of Investment (weight of value * beta)

    $20,000 0.2857 0.8 0.22856

    $50,000 0.7143 1.6 1.14288

    Total = $70,000 1 1.37

    We simply multiplied the weight of investment with the beta of each investment so that the portfolio beta could come
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “g An individual has $20,000 invested in a stock with a beta of 0.8 and another $50,000 invested in a stock with a beta of 1.6. If these are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers