Calculate beta of the portfolio


Problem: Mrs. Ochede has 20,000 naira saved from work, she intends to invest in shares. Ochede's friend has approached you for assistance. The data provided is as follows,

Company                           Beta

A                                         0.8

B                                         0.9

C                                        1.08

D                                         1.3

Q1. Calculate Beta of the portfolio of A,C, D if she invests 4,000 naira in each company .

Q2. Amount to be invested in B to obtain weighted Beta of less than 1 after making investments in a above.

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Finance Basics: Calculate beta of the portfolio
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