CFIN -STUDENT EDITION-W/ACCESS >CUSTOM<
6th Edition
ISBN: 9780357753118
Author: BESLEY
Publisher: CENGAGE C
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Chapter 8, Problem 12PROB
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 amount of $120,000 invested in four stocks and its portfolio’s beta coefficient is equal to 0.8. The value of the stock which is to be sold is $48,000 and its beta coefficient is 1.
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