You hold a portfolio with the following securities: Security Percent of portfolio Stock A 38% Stock-B 19% Stock C Please calculate it Calculate the beta portfolio

Finance Dec 27, 2020

You hold a portfolio with the following securities: Security Percent of portfolio Stock A 38% Stock-B 19% Stock C Please calculate it Calculate the beta portfolio. Beta 1.01 2.23 2.16 Round the answers to two decimal places. Your Answer:

Expert Solution

Portfolio beta is weighted avg beta of securities in that portfolio.

Security	Weights	Beta	Wtd Beta
Stock A	0.3800	1.01	0.38
Stock B	0.1900	0.23	0.04
Stock C	0.4300	2.16	0.93
Portfolio Beta			1.36

Weight of stock C = 100% - weight of stock A - weight of Stock B

= 100% - 38% - 19%

= 43%

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