Question

Calculating Portfolio Betas You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15 percent in stock S, and 40 percent in stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?

Answer 1

$0.25\times0.75+0.20\times1.90+0.15\times1.38+0.40\times1.16=1.2385$