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hammer [34]
3 years ago
7

You have $100,000 invested in a 2-stock portfolio. $30,000 is invested in stock with a beta of 1.60 and the remainder is investe

d in a stock with a beta of .60. What is the portfolio's beta
Business
1 answer:
xxTIMURxx [149]3 years ago
5 0

Answer:

the portfolio's beta is 0.9

Explanation:

The portfolio’s beta is a weighted average of the individual security betas as follows:

= [($30,000 / $100,000 ) * 1.60] + [($70,000 / $100,000) 0.60]

= [$0.3 * 1.6] + [$0.7 * 0.6]

= 0.48 + 0.42

= 0.9

So, the portfolio's beta = 0.9

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