The beta of four stocks-P, Q, R, and S-are respectively 0.6, 0.85, 1.2, and 1.35. Weight in P Weight in Q Weight in R Weight in S Portfolio 1 25% 25% 25% 25% Portfolio 2 30% 40% 20% 10% Portfolio 3 10% 20% 40% 30% What is the beta of portfolio 1? .8 1.0 1.4 1.2 1.5

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
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The beta of four stocks-P, Q, R, and S-are respectively 0.6, 0.85, 1.2, and 1.35.
Weight in P
Weight in Q
Weight in R
Weight in S
Portfolio 1
25%
25%
25%
25%
Portfolio 2
30%
40%
20%
10%
Portfolio 3
10%
20%
40%
30%
What is the beta of portfolio 1?
.8
1.0
1.4
1.2
1.5
Transcribed Image Text:The beta of four stocks-P, Q, R, and S-are respectively 0.6, 0.85, 1.2, and 1.35. Weight in P Weight in Q Weight in R Weight in S Portfolio 1 25% 25% 25% 25% Portfolio 2 30% 40% 20% 10% Portfolio 3 10% 20% 40% 30% What is the beta of portfolio 1? .8 1.0 1.4 1.2 1.5
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