Portfolio beta is used to measure the portfolio’s overall systematic risk of an investment which equals the weighted average of all individual stock’s beta coefficient in a portfolio. The total value of five stocks is $40,000 and the beta coefficient of portfolio is 1.2. The investment in stock 6 is $10,000 and its beta coefficient is 2.2.

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Chapter 8, Problem 11PROB

Summary Introduction

Portfolio beta is used to measure the portfolio’s overall systematic risk of an investment which equals the weighted average of all individual stock’s beta coefficient in a portfolio.

The total value of five stocks is $40,000 and the beta coefficient of portfolio is 1.2. The investment in stock 6 is $10,000 and its beta coefficient is 2.2.

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