You have a portfolio that is invested 13 percent in Stock A, 52 percent in Stock...

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Finance

You have a portfolio that is invested 13 percent in Stock A, 52percent in Stock B, and 35 percent in Stock C. The betas of thestocks are .82, 1.37, and 1.66, respectively. What is the beta ofthe portfolio?

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Ans 1.40

Stock BETA Investment % Beta * Investment
A          0.82 13%                                      0.11
B          1.37 52%                                      0.71
C          1.66 35%                                      0.58
Total                                      1.40

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You have a portfolio that is invested 13 percent in Stock A, 52percent in Stock B, and 35 percent in Stock C. The betas of thestocks are .82, 1.37, and 1.66, respectively. What is the beta ofthe portfolio?

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