Saturday, 2 May 2015

What is the beta of a portfolio consisting of one share of each of the following stocks given their respective prices and beta coefficients?

What is the beta of a portfolio consisting of one share of each of the following stocks given their respective prices and beta coefficients?

Stock Price Beta

A $10 1.4

B $24 0.8

C $41 1.3

D $19 1.8

How would the portfolio beta differ if (a) the investor purchased 200 shares of stocks B and C for every 100 shares of A and D and (b) equal dollar amounts were invested in each stock?



What is the beta of a portfolio consisting of one share of each of the following stocks given their respective prices and beta coefficients?

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