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Author Question: You own a stock portfolio invested 30% in a film company, 20% in a bank stock, 10% in a mining ... (Read 76 times)

kaid0807

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Question 1

You own a portfolio that is equally invested in three assets: 1) the risk-free asset; 2) Stock 1; and 3) Stock 2. Stock 1 has a beta of 1.9 and the portfolio has the same risk as the market portfolio. What is the beta of Stock 2 in the portfolio?
◦ 1.0
◦ 1.1
◦ 1.2
◦ 1.3
◦ 1.4

Question 2

You own a stock portfolio invested 30% in a film company, 20% in a bank stock, 10% in a mining company, and 40% in an oil company. The betas of these four stocks are 1.4, 0.6, 1.5, and 1.8 respectively. What is the portfolio beta?
◦ 1.00
◦ 1.20
◦ 1.35
◦ 1.41
◦ 1.50


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Marked as best answer by kaid0807 on Apr 25, 2021

Sammyo

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kaid0807

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


tkempin

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Reply 3 on: Yesterday
Excellent

 

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