The table below shows the betas and portfolio weights for 3 stocks: Portfolio weights Stock Beta Portfolio 1 Portfolio 2 A 1.8 0.3 0.1 B 1.1 0.5 0.4 C 0.5 0.2 0.5 Calculate the beta of each portfolio. What is the beta of portfolio 1? What is the beta of portfolio 2? If you are more concerned about risk than return, which portfolio should you pick? Portfolio 2 Portfolio
The table below shows the betas and portfolio weights for 3 stocks: Portfolio weights Stock Beta Portfolio 1 Portfolio 2 A 1.8 0.3 0.1 B 1.1 0.5 0.4 C 0.5 0.2 0.5 Calculate the beta of each portfolio. What is the beta of portfolio 1? What is the beta of portfolio 2? If you are more concerned about risk than return, which portfolio should you pick? Portfolio 2 Portfolio
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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he table below shows the betas and portfolio weights for 3 stocks:
The table below shows the betas and portfolio weights for 3 stocks:
Portfolio weights | |||
Stock | Beta | Portfolio 1 | Portfolio 2 |
A | 1.8 | 0.3 | 0.1 |
B | 1.1 | 0.5 | 0.4 |
C | 0.5 | 0.2 | 0.5 |
Calculate the beta of each portfolio.
What is the beta of portfolio 1?
What is the beta of portfolio 2?
If you are more concerned about risk than return, which portfolio should you pick?
Portfolio 2
Portfolio
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