You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 1, 0.92, 0.91, and 2.31, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 10PROB
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You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in
Stock S, and 27 percent in Stock T. The betas for these four stocks are 1, 0.92, 0.91, and 2.31,
respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)
Transcribed Image Text:You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 1, 0.92, 0.91, and 2.31, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)
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