Calculate the portfolio beta using the information below Stock Stock Price Shares Beta A 40.25 600...

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Question

Calculate the portfolio beta using the information below Stock Stock Price Shares Beta A 40.25 600 25 22.36 500 2.50 C 58.00

business finance

Answer 1

Answer #1

Stock	Total value=(Stock price*Shares)	Beta
A	(40.25*600)=24150	0.25
B	(22.36*500)=11,180	2.5
C	(58*600)=34800	1.15
D	(125.65*500)=62825	1.5
	Total value=132955

Portfolio beta=Respective beta*Respective investment weight

(24150/132955*0.25)+(11180/132955*2.5)+(34800/132955*1.15)+(62825/132955*1.5)

=1.27(Approx).

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Answer 2

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