You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R,

Question

You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R, 20 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.43, 0.87, 1.15, and 0.71, respectively. What is the portfolio beta?

A)0.98

B)0.91

C)0.95

D)0.88

E)0.93

You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R, 20 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.43, 0.87, 1.15, and 0.71, respectively. What is the portfolio beta?

Explanation / Answer

The correct answer is E) 0.93

Stock Weights Beta Weighted average Beta Q 0.15 1.43 0.2145 R 0.15 0.87 0.1305 S 0.20 1.15 0.23 T 0.50 0.71 0.355 Portfolio beta 0.93

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.