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Author Question: Kip owns the following portfolio of securities. What is the beta for the portfolio? Company Beta ... (Read 263 times)

moongchi

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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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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
Thanks for the timely response, appreciate it


Mochi

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Reply 3 on: Yesterday
Wow, this really help

 

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