You own $19,023 of Human Genome stock that has an assumed beta of 3

Finance May 02, 2021

You own $19,023 of Human Genome stock that has an assumed beta of 3.84. You also own $11,563 of Frozen Food Express (assumed beta =1.60) and $6,714 of Molecular Devices (assumed beta = 0.69).
What is the beta of your portfolio? (Round your answer to 2 decimal places.)
Portfolio beta

Expert Solution

Computation of Portfolio's Beta:
Particulars	Investment	Weight	Beta	Portfolio Beta
Human Genome Stock	$19,023	0.5100	3.84	1.96
Frozen food Expenses	$11,563	0.3100	1.6	0.50
Molecular Devices	$6,714	0.1800	0.69	0.12
Total	$37,300	1.00		2.58

Weight:

Human Genome Stock = $19,023/$37,300 = 0.5100

Frozen Food Expenses = $11,563/$37,300 = 0.3100

Molecular Devices = $6,714/$37,300 = 0.1800

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