Martin Ortner holds a $200,000 portfolio consisting of the following stocks: $\begin{array}{lll}
Stock&Investment&Beta\
A&\$ 50,000 & 0.95\
B&50,000 & 0.80 \
C&50,000 & 1.00 \
D&50,000 & 1.20\
Total&\$ 200,000 \
\end{array}$
What is the portfolio's beta?

Question

Quizplus · Accepted Answer

$\begin{array}{llll}
Stock&Investment &Percentage&Beta&Product\
A&\$ 50,000 & 25.00 \% & 0.95 & 0.238 \
B&\$ 50,000 & 25.00 \% & 0.80 & 0.200 \
C&\$ 50,000 & 25.00 \% & 1.00 & 0.250 \
D&\$ 50,000 & 25.00 \% & 1.20 & 0.300\
Total & \$ 200,000 & 100.00 \% && 0.988 &=\text { Portfolio beta }
\end{array}$

Martin Ortner Holds a $200,000 Portfolio Consisting of the Following