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Author Question: Your portfolio had a beta of 1.233. The portfolio included two stocks. The first stock had a beta of ... (Read 55 times)

gbarreiro

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Question 1

Your friend tells you that the Prudent Mutual Fund gives you more downside protection than buying an exchange traded fund (ETF) that mimics the market portfolio. What is he telling you about the fund's Beta?
◦ β < 1
◦ β > 1
◦ β = 1
◦ β = 0

Question 2

Your portfolio had a beta of 1.233. The portfolio included two stocks. The first stock had a beta of 0.7 and the second had a beta of 1.1. What were the portfolio weights for each stock?
◦ -0.333 in stock 1; 1.333 in stock 2
◦ -0.333 in stock 2; 1.333 in stock 1
◦ 0.333 in stock 1; 0.667 in stock 2
◦ 0.333 in stock 2; 0.667 in stock 1
◦ None of these.


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Marked as best answer by gbarreiro on Apr 25, 2021

hollysheppard095

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gbarreiro

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Reply 2 on: Apr 25, 2021
Wow, this really help


mammy1697

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

 

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