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mojhsa [17]
3 years ago
5

What is the beta for a 2 stock portfolio with a 0.43 weight in Walmart stock and the remainder in Amazon

Business
1 answer:
Contact [7]3 years ago
7 0

Answer: 0.82

Explanation:

From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.

The portfolio beta is going to be a weighted average of these two betas:

= (0.43 * 0.3616) + ( (1 - 0.43) * 1.1634)

= 0.155488 + 0.663138

= 0.82

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