What is the portfolio beta


Problem:

You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 5 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.19, 1.53, 1.24, and 0.78, respectively.

Required:

Question: What is the portfolio beta?

  • 1.06
  • 1.08
  • 1.03
  • 1.11
  • 1

Note: Could someone please give me a step by step solution?

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Finance Basics: What is the portfolio beta
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