What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90,40% of stock B with a beta of 1.05,and 35% of stock C with a beta of 1.73?
A) 1.0
B) 1.17
C) 1.22
D) 1.25

Name: What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90,40% of stock B with a beta of 1.05,and 35% of stock C with a beta of 1.73? A) 1.0 B) 1.17 C) 1.22 D) 1.25
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Question

Quizplus · Accepted Answer

β_Portfolio = 0.25 × 0.9 + 0.4 × 1.05 + 0.35 × 1.73 = 1.25

What Is the Beta of a 3-Stock Portfolio Including 25