NegativeCreep5526 NegativeCreep5526
  • 04-07-2021
  • Business
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What is the beta of a three-stock portfolio that includes 25% of stock A with a beta of 0.90, 40% stock B with a beta of 1.05, and 35% stock C with a beta of 1.73

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andromache andromache
  • 05-07-2021

Answer:

the beta of a three-stock portfolio is 1.25

Explanation:

The computation of the beta of a three-stock portfolio is shown below:

= 25% of .9 + 40% of 1.05 +  35% of 1.73

= .225 + .42 + .61

= 1.25

Hence, the beta of a three-stock portfolio is 1.25

The same should be considered and relevant

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