Question

Calculate the portfolio beta based on the following information: Stock Invested Amount beta A $2,532 0.5...

Calculate the portfolio beta based on the following information:

Stock Invested Amount beta
A

$2,532

0.5
B $1,604 0.9
C $1,886 0.8


Note: Enter your answer rounded off to two decimal points. For example, if your answer is 1.2456 then enter as 1.25 in the answer box.

Homework Answers

Answer #1

Portfolio beta = (weight of each stock in portfolio * beta of stock)

weight of each stock = invested amount in stock / total invested amount

beta of portfolio = 0.70

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