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Dr Zweibel's Portfolio Consists of Four Stocks: AZMN, 35%, Beta

Question 101

Essay

Dr. Zweibel's portfolio consists of four stocks: AZMN, 35%, beta 2.4; MKR, 20%, beta 1.6; ABDE, 25%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor?

Correct Answer:

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Portfolio beta = (.35 × 2.4) + (.20 × 1....

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