You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R,

Question

You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 0.94, 1.11, 1.12, and 1.29, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))

You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 0.94, 1.11, 1.12, and 1.29, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

portfolio beta = 0.35*0.94+0.2*1.11+0.25*1.12+0.2*1.29 = 1.089

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