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A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta of 1.21. Stock B has a beta of .95. What is the portfolio beta?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta of 1.21. Stock B has a beta of .95. What is the portfolio beta?

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