Question

You own $18,571 of Human Genome stock that has a beta of 3.53. You also own $11,749 of Frozen Food Express (beta = 1.82) and $7,580 of Molecular Devices (beta = 0.63).

What is the beta of your portfolio? (Round your answer to 2 decimal places.)

Answer 1

	i	ii	iii	iv=ii*iii
Source	Amount invested	Weight	Beta	Weight *Beta
Human Genome	18571	49.00%	3.53	1.73
Frozen Food Express	11749	31.00%	1.82	0.56
Molecular Devices	7,580	20.00%	0.63	0.13
	37900			2.42
Therefore Beta of portfolio =		2.42