5. The beta of asset A is 1.3, and the beta of asset B is -0.2....

Question

Question

5. The beta of asset A is 1.3, and the beta of asset B is -0.2. What is the beta of a portfolio that invests $100 in asset A

business finance

Answer 1

Answer #1

Beta of Portfolio = [100(1.3) + 50(-0.20)]/150

Beta of Portfolio = 0.80

So,

Portfolio Beta = 0.80

Answer 2

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