A portfolio is composed of $2,000 invested in Stock A,$3,000 in Stock B,$4,000 in Stock C,and $5,000 in Stock D.What is the beta of the portfolio if the betas of Stock A,B,C,and D are 0.9,1.6,1.8 and 1.2,respectively?
A) 1.03
B) 1.26
C) 1.41
D) 1.65

Question

Quizplus · Accepted Answer

Total portfolio value = $2,000 + $3,000 + $4,000 + $5,000 = $14,000
Portfolio beta, 11ea8229_34d0_07b8_bbd8_dde728e58b60_TB1726_00

A Portfolio Is Composed of $2,000 Invested in Stock A,$3,000