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26 Nov 2019
Megan Ross holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta? a. 1.17 b. 1.56 c. 1.29 d. 1.42 e. 1.06
Megan Ross holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta? a. 1.17 b. 1.56 c. 1.29 d. 1.42 e. 1.06
dittoaivyLv1
22 Jun
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Casey DurganLv2
5 Nov 2019
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Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $250,000 | 1.15 |
| B | 100,000 | 1.6 |
| C | 500,000 | 0.65 |
| D | 150,000 | -0.25 |
| Total investment | 1,000,000 | |
The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
%
Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta?
| Weight | Beta | |
| Stock A | 30 pct.. | 1.80 |
| Stock B | 35 pct.. | 1.50 |
| Stock C | 15 pct. | 1.38 |
| Stock D | 20 pct. | 0.80 |
| 1.43 |
| 1.37 |
| 1.40 |
