Rene owns the following portfolio of securities. What is the beta for the portfolio? Company Beta...

Question

Question

Rene owns the following portfolio of securities. What is the beta for the portfolio?

A) 1.20

B) 1.50

C) 1.74

D) 1.98

PLEASE SHOW WORK !

business finance

Answer 1

Answer #1

Portfolio beta=Respective beta*Respective weight

=(0.5*1.82)+(0.3*0.53)+(0.2*0.67)

which is equal to

=1.20(Approx).

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Answer 2

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