Calculating beta portfolio

User Generated

yrfyvrpnthva

Business Finance

Description

You hold a portfolio with the following securities:

Security        Percent of portfolio     Beta

Stock A                   30%                   0.76

Stock B                   15%                   1.69

Stock C        Please calculate it        1.32

Calculate the beta portfolio.

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Explanation & Answer

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Percent of Stock C in Portfolio = 100% - 30% - 15% = 55%

Portfolio beta = (Percent of stock A*Beta of Stock A) + (Percent of stock B*Beta of Stock B) + (Percent of stock C*Beta of Stock C) = (30%**0.76) + (15%*1.69) + (55%*1.32) = 1.2075


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Anonymous
Awesome! Made my life easier.

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