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You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R,...

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Finance

You own a stock portfolio invested 30 percent in Stock Q, 25percent in Stock R, 5 percent in Stock S, and 40 percent in StockT. The betas for these four stocks are 0.8, 1.05, 1.55, and 0.65,respectively. What is the portfolio beta?

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Ans 0.84

Stock INVESTMENT (i) Beta (ii) Investment* Beta (i)* (ii)
Q                         30                    0.80                                      0.24
R                         25                    1.05                                      0.26
S                           5                    1.55                                      0.08
T                         40                    0.65                                      0.26
Total                      100                                      0.84

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You own a stock portfolio invested 30 percent in Stock Q, 25percent in Stock R, 5 percent in Stock S, and 40 percent in StockT. The betas for these four stocks are 0.8, 1.05, 1.55, and 0.65,respectively. What is the portfolio beta?

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