Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.43, 0.86, 1.06, and 1.61, respectively. What is the beta of a portfolio with the following weights in each asset: ? What is the beta of portfolio 1? (Round to two decimal places.)

Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.43, 0.86, 1.06, and 1.61, respectively. What is the beta of a portfolio with the following weights in each asset: ? What is the beta of portfolio 1? (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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Question

Beta of a portfolio. The beta of four stocks--G, H, I, and J-are 0.43, 0.86, 1.06, and 1.61, respectively. What is the beta of a portfolio with the following weights in each asset:
?
.....
What is the beta of portfolio 1?
(Round to two decimal places.)

Weight in
Stock G
Weight in
Stock H
Weight in
Stock I
Weight in
Stock J
Portfolio 1
25%
25%
25%
25%
Portfolio 2
30%
40%
20%
10%
Portfolio 3
10%
20%
40%
30%

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