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zysi [14]
3 years ago
6

You invested $30,000 in BOA, $20,000 in Best Buy, and $50,000 in Harley-Davidson for your portfolio. Betas are 1.8, 1.05 and 1.5

respectively. What is your portfolio beta?
Business
1 answer:
steposvetlana [31]3 years ago
4 0

Answer:

Beta= 1.5

Explanation:

<u>First, we need to calculate the proportional investment of each asset:</u>

Total investment= $100,000

BOA= 30,000/100,000= 0.3

Best Buy= 20,000/100,000= 0.2

Harley-Davidson= 50,000/100,000= 0.5

<u>To calculate the beta of the portfolio, we need to use the following formula:</u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)...

Beta= (0.3*1.8) + (0.2*1.05) + (0.5*1.5)

Beta= 1.5

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Answer:

7.3%

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Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula

As per given data

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Alchen [17]

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Despite huge legal costs and social disapproval, mr. lambers refuses to pay income taxes because his conscience will not allow h
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Find out more on real rates of return at brainly.com/question/1698368.

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