You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A, $6,000 in stock B, and $1,000 in stocks C and D. Given the information regarding each stock’s Beta in the table below, compute the portfolio beta. Stock Beta A -0.6 B 1.9 C 1 D 1.2     1.24     0.88     -0.02     1.06

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A, $6,000 in stock B, and $1,000 in stocks C and D. Given the information regarding each stock’s Beta in the table below, compute the portfolio beta.

Stock Beta
A -0.6
B 1.9
C 1
D 1.2
   

1.24

   

0.88

   

-0.02

   

1.06

 

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