Sam has a portfolio with 5 stocks. He has 5000 in google, 6000 in amazon, 7000 in GE, 8000 in walmart, and 14000 in Tesla. The beta of these stocks are 1.4, 1.1, 0.9, 0.8, and 2.4. What is the porfolio beta?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Sam has a portfolio with 5 stocks. He has 5000 in google, 6000 in amazon, 7000 in GE, 8000 in walmart, and 14000 in Tesla. The beta of these stocks are 1.4, 1.1, 0.9, 0.8, and 2.4. What is the porfolio beta?

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Beta of portfolio is weighted average beta of all stock 

Beta of portfolio =w1 B1+w2 B2+w3 B3 + w4 B4 + w5 B5 

w=weight of stock 

B=Beta of stock 

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