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monitta
4 years ago
15

You have a portfolio that is equally invested in Stock F with a beta of 1.08, Stock G with a beta of 1.45, and the market. What

is the beta of your portfolio
Business
1 answer:
Aliun [14]4 years ago
5 0

Answer:

1.265

Explanation:

According to the situation, the solution of the beta of portfolio is as follows

Beta portfolio = (weightage of investment F × beta F) + (proportion of investment G ×beta G)

Beta protfolio =  (0.5 × 1.08) + (0.5 × 1.45)

= 0.54 + 0.725

= 1.265

Hence, the beta of your portfolio is 1.265  by applying the above formula

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