Portfolio Beta You hold the positions in the table below. What is the beta of your portfolio?
A) 1.4
B) 2.08
C) 2.13
D) 5.6

Question

Portfolio Beta You hold the positions in the table below. What is the beta of your portfolio? 
A) 1.4 
B) 2.08 
C) 2.13 
D) 5.6

Quizplus · Accepted Answer

To calculate portfolio beta, use the formula:
Portfolio Beta = (Weight of Asset A x Beta of Asset A) + (Weight of Asset B x Beta of Asset B) + (Weight of Asset C x Beta of Asset C)
= (0.4 x 1.2) + (0.3 x 2.4) + (0.3 x 1.8)
= 0.48 + 0.72 + 0.54
= 2.08
Therefore, the correct option is B) 2.08

Portfolio Beta You Hold the Positions in the Table Below