You have three portfolios containing four assets each. The following table specifies the weights assigned to each

Question:

You have three portfolios containing four assets each. The following table specifies the weights assigned to each asset in each of the three portfolios, along with each asset’s beta:

a. Calculate the betas for the three portfolios.
b. Rank the portfolios from the highest risk to the lowest risk according to their betas.

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Aug 30, 2022 05:37 AM

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You have three portfolios containing four assets each. The following table specifies the weights assigned to each

Question:

Asset A B C D Total Asset Beta 1.5 1.8 0.30 -0.40 Portfolio A 30% 40% 20% 10% 100% Portfolio Weights Portfolio B 5% 15% 30% 50% 100% Portfolio C 35% 5% 40% 20% 100%

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Portfolio betas a b Portfolio A risk is slightly less ...View the full answer

Fundamentals Of Investing

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