Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Stock A has a standard deviation of 20% and a beta of 0.6. Stock B has a standard deviation of 12% and a beta of 1.4. The correlation of returns between stocks A and B is 0.7. Your portfolio is invested 30% in stock A and
70% in stock B. What is the portfolio beta?
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Transcribed Image Text:Stock A has a standard deviation of 20% and a beta of 0.6. Stock B has a standard deviation of 12% and a beta of 1.4. The correlation of returns between stocks A and B is 0.7. Your portfolio is invested 30% in stock A and 70% in stock B. What is the portfolio beta?
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