What is the beta of a portfolio comprised of the following securities?
A)1.008
B)1.014
C)1.038
D)1.067
E)1.127

Question

What is the beta of a portfolio comprised of the following securities? 
A)1.008 
B)1.014 
C)1.038 
D)1.067 
E)1.127

Quizplus · Accepted Answer

Value_Portfolio = $2,000 + $3,000 + $5,000 = $10,000Beta_Portfolio = ($2,000 F1F1F1S1F1F1F10 $10,000 F1F1F1S1F1F1F10 1.20)+ ($3,000 F1F1F1S1F1F1F10 $10,000 F1F1F1S1F1F1F10 1.46)+ ($5,000 F1F1F1S1F1F1F10 $10,000 F1F1F1S1F1F1F10 .72)= .24 + .438 + .36 = 1.038

What Is the Beta of a Portfolio Comprised of the Following