You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B
ID: 2727218 • Letter: Y
Question
You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)
You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)
Explanation / Answer
Answer: Calculation of the Beta of the Portfolio:
Bp=1.2*(42500/104400)+1.5(31500/104400)+0.7*(30400/104400)
=0.4885+0.4525+0.2038
=1.14
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.