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.
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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