A client has a $1,200,000 portfolio consisting of the following four stocks: 1. $300,000 ABC @ 1.1

Question:

A client has a $1,200,000 portfolio consisting of the following four stocks:

1. $300,000 ABC @ 1.1 beta.

2. $225,000 RTR @ 0.7 beta.

3. $405,000 XYZ @ 0.3 beta.

4. $270,000 PDQ @ 1.3 beta.

What is the beta of the portfolio as a whole?

a. 0.8.

b. 0.85.

c. 0.91.

d. 1.0.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...