A portfolio comprises Coke (beta of 1.5) and Wal-Mart (beta of 0.5). The amount invested in Coke is $20,000 and in Wal-Mart is $20,000. What is the beta of the portfolio?A. 0.9B. 1C. 0.95D. 1.1

Coke Beta =1.5 Wal Mart = 0.5 Coke =20,000 Wal Mart =20000

Answered: A portfolio comprises Coke (beta of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Using the table below, what is the portfolio beta? Security Security #1 Security #2 Security #3 Security #4 O 1.18 O 1.07 O 1.03 O 1.61 Amount Invested $3500 $4500 $2200 $3400 Beta 0.85 1.24 1.00 1.56
D4) Finance Consider a portfolio composed of shares AAA and BBB as shown in the following table. At 95% confidence level, select the correct statement AAA BBB Value 2,470,000 785,750 % investment 76% 24% Volatilities 2.32 % 2.69 % Correlation for both assets 0.65 Portfolio Value for both assets 3,255,750 a) The Component VaR of the Asset AAA is 92,223 and the component VaR of the Asset BBB is 27955.69 b) The contribution to the VaR of the Asset AAA is 77% and the one of the Asset 2 is 23% c) Both answers are correct
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A portfolio comprises Coke (beta of 1.5) and Wal-Mart (beta of 0.5). The amount invested in Coke is $20,000 and in Wal-Mart is $20,000. What is the beta of the portfolio? A. 0.9 B. 1 C. 0.95 D. 1.1