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Check my work Check My Work button is now enabledItem 5Item 5 10 points You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .78, .87, 1.13, and 1.45, respectively. What is the portfolio beta?

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Answer #1

Portfolio beta is equal to weighted average beta

= 0.78*15% + 0.87*25% + 1.13*40% + 1.45*20%

= 1.0765

= 1.08

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