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Question 71001: YOU HOLD A $1.3 MILLION PORTFOLIO MADE OF THE FOLLOWING STOCKS:
MARKET VALUE BETA
STOCK A .2 MILLION 1.5
STOCK B .5 MILLION 1.2
STOCK C .6 MILLION .8
WHAT IS THE BETA OF THE PORTFOLIO?
WHEN I WORK IT I GOT 1.17..IM NOT SURE THATS CORRECT ... PLEASE ADVISE AND THANK YOU IN ADVANCE
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! YOU HOLD A $1.3 MILLION PORTFOLIO MADE OF THE FOLLOWING STOCKS:
MARKET VALUE BETA
STOCK A .2 MILLION 1.5
STOCK B .5 MILLION 1.2
STOCK C .6 MILLION .8
WHAT IS THE BETA OF THE PORTFOLIO?
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I would not stake my life on this because I don't know that
much about finance. But, looking up the meaning of "beta"
and finding it is the slope relating to market value I think
you should proceed as follows:
1.5*.2 + 1.3*.5 + 0.8*.6 = 1.38 Million
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Cheers,
Stan H.
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