Question

You own 500 shares of Stock A at a price of \$60 per share, 405 shares...

 You own 500 shares of Stock A at a price of \$60 per share, 405 shares of Stock B at \$80 per share, and 500 shares of Stock C at \$41 per share. The betas for the stocks are .8, 1.8, and .7, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)
 Beta

 Total Portfolio value = price of Stock A*Shares of Stock A + price of Stock B*Shares of Stock B + price of Stock C*Shares of Stock C =60*500+80*405+41*500 =82900 Weight of Stock A = price of Stock A*Shares of Stock A/Total Portfolio Value = 30000/82900 =0.3619 Weight of Stock B = price of Stock B*Shares of Stock B/Total Portfolio Value = 32400/82900 =0.3908 Weight of Stock C = price of Stock C*Shares of Stock C/Total Portfolio Value = 20500/82900 =0.2473 Beta of Portfolio = Weight of Stock A*Beta of Stock A+Weight of Stock B*Beta of Stock B+Weight of Stock C*Beta of Stock C Beta of Portfolio = 0.8*0.3619+1.8*0.3908+0.7*0.2473 Beta of Portfolio = 1.17