Question

You have a portfolio that is equally invested in Stock F with a beta of .94, Stock G with a beta of 1.36, and the market. What is the beta of your portfolio

Answer 1

Answer:

Beta protfolio= 1.15

Explanation:

Giving the following information:

Stock F:

Beta= 0.94

Stock G:

Beta= 1.36

To calculate the beta of the portfolio, we need to use the following formula:

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

Beta protfolio= (0.5*0.94) + (0.5*1.36)

Beta protfolio= 1.15