An individual has $10,000 invested in a stock with a beta of 0.4
and another $55,000...
70.2K
Verified Solution
Link Copied!
Question
Finance
An individual has $10,000 invested in a stock with a beta of 0.4and another $55,000 invested in a stock with a beta of 2.5. Ifthese are the only two investments in her portfolio, what is herportfolio's beta? Round your answer to two decimal places.
Answer & Explanation
Solved by verified expert
4.1 Ratings (756 Votes)
Notes We calculate portfolio beta by calculating weight of each investment in the portfolio and then beta is multiplied with
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!