An investor has a three-stock portfolio with $25,000 invested inApple, $50,000 invested in Ford, and $25,000 invested in Walmart.Apple’s beta is estimated to be 1.20, Ford’s beta is estimated tobe 0.80, and Walmart’s beta is estimated to be 1.0. What is theestimated beta of the investor’s portfolio? (0.95)
An investor has a three-stock portfolio with $25,000 invested inApple, $50,000 invested in Ford, and $25,000 invested in Walmart.Apple’s beta is estimated to be 1.20, Ford’s beta is estimated tobe 0.80, and Walmart’s beta is estimated to be 1.0. What is theestimated beta of the investor’s portfolio? (0.95)
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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An investor has a three-stock portfolio with $25,000 invested in
Apple, $50,000 invested in Ford, and $25,000 invested in Walmart.
Apple’s beta is estimated to be 1.20, Ford’s beta is estimated to
be 0.80, and Walmart’s beta is estimated to be 1.0. What is the
estimated beta of the investor’s portfolio? (0.95)
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