Portfolio weights and diversification


Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the technolgy field?

A financial planner is examining the portfolios held by several of her clients. The portfolios are described below. Identify which portfolio is less likely to have the smallest standard deviation-

A portfolio consisting of about 30 technology stocks
A portfolio consisting of Microsoft, Apple, Computer, and Google
A portfolio consisting of about 3 randomly selected stocks
A portfolio containing only Microsoft stock
A portfolio consisting of about 30 randomly selected stocks

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Portfolio weights and diversification
Reference No:- TGS028321

Expected delivery within 24 Hours