Suppose you have a portfolio consisting of Asset C, which has a beta of 1.5, and Asset D, which has a beta of 0.8. If you have 80 percent of the portfolio in Asset C and the rest in Asset D, the beta of your portfolio is closest to:
A) 0.460.
B) 1.000.
C) 1.150.
D) 1.360.

Question

Quizplus · Accepted Answer

The portfolio beta is calculated as the weighted average of the individual asset betas: (0.8 * 1.5) + (0.2 * 0.8) = 1.36.

Suppose You Have a Portfolio Consisting of Asset C, Which