Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky? a. The beta for portfolio A is. (Round to four decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Asset 1 2 34 4 5 Totals Asset beta 1.39 0.47 1.87 1.16 0.78 Portfolio weights Portfolio A 20% 30% 5% 5% 40% 100% Portfolio B 20% 15% 40% 10% 15% 100% - X
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky? a. The beta for portfolio A is. (Round to four decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Asset 1 2 34 4 5 Totals Asset beta 1.39 0.47 1.87 1.16 0.78 Portfolio weights Portfolio A 20% 30% 5% 5% 40% 100% Portfolio B 20% 15% 40% 10% 15% 100% - X
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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Question
Jm. 157.
Transcribed Image Text:Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different
proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table:
a. Calculate the betas for portfolios A and B.
b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?
a. The beta for portfolio A is
(Round to four decimal places.)
Data table
(Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
Asset
1
2
3
4
5
Totals
Asset beta
1.39
0.47
1.87
1.16
0.78
Print
Portfolio weights
Portfolio A
20%
30%
5%
5%
40%
100%
Done
Portfolio B
20%
15%
40%
10%
15%
100%
X
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