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Lyrx [107]
3 years ago
5

What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35

% of stock C with a beta of 1.73
Business
1 answer:
natka813 [3]3 years ago
5 0

Answer:

1.25

Explanation:

Calculation for What is the beta of a 3-stock portfolio

Portfolio beta = (.25 *0.9) + (.4 *1.05) + (.35 *1.73)

Portfolio beta = .225 + .42 + .606

Portfolio beta = 1.25

Therefore the beta of a 3-stock portfolio will be 1.25

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