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kykrilka [37]
1 year ago
6

You own $2,000 of city steel stock that has a beta of 2. 5. you also own $8,000 of rent-n-co (beta = 1. 9) and $4,000 of lincoln

corporation (beta = 0. 25). what is the beta of your portfolio?
Business
1 answer:
Goshia [24]1 year ago
6 0

You own $2,000 of city steel stock that has a beta of 2. 5. you also own $8,000 of rent-n-co (beta = 1. 9) and $4,000 of lincoln corporation (beta = 0. 25). 1.51 is the beta of your portfolio?

Portfolio beta = Weighted Average beta of stocks

Portfolio beta = [2,000(2.5) + 8,000(1.9) + 4,000(0.25)]/14,000

Portfolio beta = 1.51.

Lincoln corporation announced last year that it will cease manufacturing the Continental and MKZ at the end of 2020. The rest of the 2020 models can be purchased new. When those are gone, Lincoln will be left with an all-SUV lineup.

Learn more about the lincoln corporation at

brainly.com/question/17134526

#SPJ4

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