You invest $650 in security A with a beta of 1.2 and $450 in security B...

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Question

You invest $650 in security A with a beta of 1.2 and $450 in security B with a beta of 0.7. The beta of this portfolio is О О

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Answer 1

Answer #1

Total investment=(650+450)=1100

Portfolio beta=Respective beta*Respective investment weight

=(650/1100*1.2)+(450/1100*0.7)

=1.00(Approx).

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Answer 2

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