Question

You own a stock portfolio that is invested 10% in stock A, 30% in stock B, 40% in stock C, and 20% in stock D. These stocks have betas of 1.2, .8, 1.1, and 1.5, respectively. What is the beta of the portfolio?

Answer 1

Explanation:

10%×1.2+30%×0.8+40%×1.1+20%×1.5=12%+24%+44%+30%=1.1?