An investor has a three-stock portfolio with $25,000 invested inApple, $50,000 invested in Ford, and $25,000 invested in Walmart.Apple’s beta is estimated to be 1.20, Ford’s beta is estimated tobe 0.80, and Walmart’s beta is estimated to be 1.0. What is theestimated beta of the investor’s portfolio? (0.95)

An investor has a three-stock portfolio with $25,000 invested inApple, $50,000 invested in Ford, and $25,000 invested in Walmart.Apple’s beta is estimated to be 1.20, Ford’s beta is estimated tobe 0.80, and Walmart’s beta is estimated to be 1.0. What is theestimated beta of the investor’s portfolio? (0.95)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 10PROB

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