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Author Question: Kip owns the following portfolio of securities. What is the beta for the portfolio? Company Beta ... (Read 132 times)

moongchi

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on: Jul 10, 2018
Kip owns the following portfolio of securities. What is the beta for the portfolio?
 
  Company Beta Percent of Portfolio
  Apple .82 50
  Ford 2.53 30
  Federal Express 1.67 20
 
  A) 1.00
  B) 1.50
  C) 1.74
  D) 1.98

Question 2

Treasury bills have a beta of ________.
 
  A) 0.0
  B) 0.50
  C) 1.00
  D) The beta for a Treasury bill will vary from period to period.


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janieazgirl

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B) p =  i  wi = .82  50 + 2.53  30 + 1.67  20 = 1.50.

Answer to Question 2

Answer: A


moongchi

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

ashely1112

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  • Posts: 347
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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