Answer the following questions related to a Portfolio of stocks consisting of the stocks of the Dow
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Answer the following questions related to a Portfolio of stocks consisting of the stocks of the Dow 30 (assume an equal investment in each stock-perhaps$1000 investment for each).
1.) Calculate the beta of this portfolio of stocks using the current betas for each stock as given on Yahoo Finance or CNBC. What does this portfolio beta measure?
| SYMBOL | NAME | PRICE | CHANGE | %CHANGE | LOW | HIGH | PREVIOUS CLOSE |
|---|---|---|---|---|---|---|---|
| AXP | American Express Co | 196.44 | -1.94 | -0.98 | 194.39 | 197.38 | 198.38 |
| AMGN | Amgen Inc | 222.27 | -0.39 | -0.18 | 219.43 | 222.58 | 222.66 |
| AAPL | Apple Inc | 170.99 | -1.55 | -0.9 | 170.74 | 171.91 | 172.55 |
| BA | Boeing Co | 216.52 | -2.41 | -1.1 | 214.29 | 218.58 | 218.93 |
| CAT | Caterpillar Inc | 199.81 | -3.83 | -1.88 | 199.01 | 201.76 | 203.64 |
| CSCO | Cisco Systems Inc | 56.51 | +2.27 | +4.18 | 55.4 | 57.06 | 54.25 |
| CVX | Chevron Corp | 133.12 | -1.18 | -0.88 | 132.45 | 134.58 | 134.3 |
| GS | Goldman Sachs Group Inc | 350.99 | -9.05 | -2.51 | 350.64 | 360.96 | 360.05 |
| HD | Home Depot Inc | 351.88 | +1.79 | +0.51 | 347.39 | 352.02 | 350.09 |
| HON | Honeywell International Inc | 187.25 | -1.81 | -0.96 | 185.66 | 187.88 | 189.06 |
| IBM | International Business Machines Corp | 125.66 | -3.52 | -2.72 | 125.32 | 128.5 | 129.18 |
| INTC | Intel Corp | 47.83 | -0.39 | -0.82 | 47.38 | 47.86 | 48.23 |
| JNJ | Johnson & Johnson | 166.3 | -0.91 | -0.54 | 164.92 | 167.45 | 167.21 |
| KO | Coca-Cola Co | 61.28 | +0.39 | +0.63 | 60.4 | 61.33 | 60.9 |
| JPM | JPMorgan Chase & Co | 152.81 | -2.19 | -1.41 | 151.93 | 153.73 | 155 |
| MCD | McDonald's Corp | 252.1 | -0.99 | -0.39 | 250 | 252.6 | 253.09 |
| MMM | 3M Co | 149.96 | -4.17 | -2.71 | 149.09 | 151.47 | 154.14 |
| MRK | Merck & Co Inc | 76.53 | -0.69 | -0.89 | 76 | 76.87 | 77.22 |
| MSFT | Microsoft Corp | 294.03 | -5.47 | -1.83 | 293.22 | 296.8 | 299.5 |
| NKE | Nike Inc | 144.68 | -1.81 | -1.24 | 144.41 | 146.91 | 146.49 |
| PG | Procter & Gamble Co | 159.02 | +1.01 | +0.64 | 157.35 | 159.17 | 158.01 |
| TRV | Travelers Companies Inc | 171.34 | -0.93 | -0.54 | 168.95 | 171.65 | 172.27 |
| UNH | UnitedHealth Group Inc | 474.79 | -5.26 | -1.1 | 470.6 | 479.29 | 480.05 |
| CRM | Salesforce. Com Inc | 202.73 | -9.01 | -4.26 | 201.82 | 209.75 | 211.74 |
| VZ | Verizon Communications Inc | 53.4 | +0.01 | +0.01 | 52.78 | 53.58 | 53.4 |
| V | Visa Inc | 225.44 | -3.38 | -1.48 | 225.31 | 228.81 | 228.82 |
| WBA | Walgreens Boots Alliance Inc | 47.06 | -0.34 | -0.72 | 46.76 | 47.32 | 47.4 |
| WMT | Walmart Inc | 137.32 | +3.8 | +2.84 | 133.78 | 138 | 133.53 |
| DIS | Walt Disney Co | 154.36 | -1.99 | -1.27 | 153.58 | 155.36 | 156.35 |
| DOW | Dow Inc | 61.42 | -0.67 | -1.07 | 61.27 | 62.1 | 62.08 |
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