The beta coefficient for bill's portfolio is $39,000.
The beta, also known as the beta coefficient, is a measure used in finance to determine how an individual asset will change (on average) when the stock market as a whole rises or falls. So, when a small amount of a particular asset is added to the market portfolio, beta is a useful indicator of how much risk that asset adds to the portfolio. The systematic risk, market risk, or hedge ratio of an asset is also known as its beta. Idiosyncratic risk cannot be quantified by beta. The value-weighted average of all market-betas of all investable assets in relation to the value-weighted market index is one by definition. When an asset's beta value is higher than 1, it means that, on average, it experiences returns that are not exactly 1:1 with those of the market portfolio.
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