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You own a portfolio invested 28.98% in Stock A, 16.72% in Stock B, 24.1% in Stock...

You own a portfolio invested 28.98% in Stock A, 16.72% in Stock B, 24.1% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.42, 1.07, 0.96, and 1.05. What is the portfolio beta?

Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

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Answer #1
Stock Weight Beta Weight * Beta
A 28.98% 0.42        0.122
B 16.72% 1.07        0.179
C 24.10% 0.96        0.231
D 30.20% 1.05        0.317
100.00%        0.849
So portfolio Beta would be 0.85
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