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Assume you have the following portfolio. STOCK STOCK WEIGHT BETA Apple 39 % 1.58 Green Mountain Coffee 22 % 1.39 Disney 27 % 1.18 Target 12 % 1.29 What is the...

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Finance

Assume you have the following portfolio.

STOCK

STOCK WEIGHT

BETA

Apple

39 %

1.58

Green Mountain Coffee

22 %

1.39

Disney

27 %

1.18

Target

12 %

1.29

What is the portfolio's beta?

Answer & Explanation Solved by verified expert
4.4 Ratings (788 Votes)

Ans portfolio's beta = 1.40

Stock Stock Weight Beta Stock weight* Beta
Apple 39%                     1.58                                      0.62
Green Mountain Coffee 22%                     1.39                                      0.31
Disney 27%                     1.18                                      0.32
Target 12%                     1.29                                      0.15
Total                     5.44                                      1.40

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Transcribed Image Text

Assume you have the following portfolio.STOCKSTOCK WEIGHTBETAApple39 %1.58Green Mountain Coffee22 %1.39Disney27 %1.18Target12 %1.29What is the portfolio's beta?

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