EJH has a beta of 1.2, CSH has a beta of 0.6, and KMS has a beta of 1. If you put 25% of your money in EJH, 25% in CSH, and 50% in KMS, what is the beta of your portfolio? The beta of your portfolio is (Round to two decimal places.)

EJH has a beta of 1.2, CSH has a beta of 0.6, and KMS has a beta of 1. If you put 25% of your money in EJH, 25% in CSH, and 50% in KMS, what is the beta of your portfolio? The beta of your portfolio is (Round to two decimal places.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 1P: Your investment club has only two stocks in its portfolio. 20,000 is invested in a stock with a beta...

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Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

EJH has a beta of 1.2, CSH has a beta of 0.6, and KMS has a beta of 1. If you put 25% of
your money in EJH, 25% in CSH, and 50% in KMS, what is the beta of your portfolio?
The beta of your portfolio is
(Round to two decimal places.)

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