What Is the Beta of a Three-Stock Portfolio Including 25

question 103

Multiple Choice

What is the Beta of a three-stock portfolio including 25% of Stock A with a Beta of .90, 40% Stock B with a Beta of 1.05, and 35% Stock C with a Beta of 1.73?

• A)1.05
• B)1.17
• C)1.22
• D)1.25 Portfolio Beta = (.25 x 0.9) + (.4 x 1.05) + (.35 x 1.73)
• = )225 + .42 + .606

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