You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R,
ID: 2727221 • Letter: Y
Question
You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 1.5, .6, 1.6, and .8, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 1.5, .6, 1.6, and .8, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Explanation / Answer
Bp=.15(1.5)+.3(0.6)+.2(1.6)+.35(0.8)=1.005
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