An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio’s beta?
An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio’s beta?
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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PORTFOLIO BETA An individual has $20,000 invested in a stock with a beta of 0.6 and
another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments
in her portfolio, what is her portfolio’s beta?
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