Question: 0.4 is not the correct answer. Please answer in detail, thanks! P8-25 (similar to) QU Beta of a portfolio. The beta of four stocks-G, H,

0.4 is not the correct answer. Please answer in detail, thanks!

P8-25 (similar to) QU Beta of a portfolio. The beta of four stocks-G, H, I, and J--are 0.44, 0.76, 1.04, and 1.53, respectively. What is the beta of a portfolio with the following weights in each asset? Weight in Stock J Weight in Stock G Weight in Stock H Weight in Stock 25% 25% 25% Portfolio 1 25% 30% 20% Portfolio 2 40% 10% Portfolio 3 20% 30% 10% 40% What is the beta of portfolio 1? 0.40 (Round to two decimal places.)

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