Solved: What is the beta of a portfolio, Finance Basics

+44 141 628 6080
[email protected]

What is the beta of a portfolio

Problem:

The risk free rate is 5% and the market risk premium is 10%. The Ka equals 25% and the Kb equals 20%. What is the beta of a portfolio that contains only stocks A and B if 1/5 of funds are invested in A and the rest in B?

Instructors answer is Beta of portfolio equals 1.6

Show steps to obtain this solution.

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the beta of a portfolio

Reference No:- TGS02037987

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Review the documentary series - the baby human

Watch the following clip from the documentary series "The Baby Human: To FeelLinks to an external site."

Journal articles focus on treatment of addictive behaviors

Locate several journal articles that focus on the treatment of addictive behaviors. First, choose one of the following interventions:

Discuss behaviors while withholding reinforcement

Make a comment about your classmate's post: I chose DRA because it focuses on reinforcing alternative, appropriate behaviors while withholding reinforcement

Thinking of administering an assessment measure

You are thinking of administering an assessment measure to one of your clients. One factor you would consider in

How should one break down the steps in a complex behavior

How should one break down the steps in a complex behavior such that they can be trained using forward or backward chaining?

Design effective real-world strategies

Describe 2 ways in which our knowledge of findings from research on working memory can help us design effective real-world strategies for coping

Provide a brief overview of the client demographics

Students will provide a brief overview of the client demographics (fictional name, age, gender identity, marital status, ethnicity, and/or race),

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the beta of a portfolio

Reference No:- TGS02037987

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Analyzing the personal and positional sources of power

Q : Determine whether security is overpriced or underpriced

Q : Explain the proposed business information systems scope

Q : Capm to calculate the cost of equity capital

Q : What is the beta of a portfolio

Q : Prepare a flow chart for purchasing a big mac

Q : Determine the required rate of return using the capm

Q : Determine the training and development

Q : What are the critical assumptions in the capm