Question: I need help !!! must be 150 words This week we will discuss using Betas to diversify a portfolio. Develop a portfolio of 5 companies

I need help !!! must be 150 words

This week we will discuss using Betas to diversify a portfolio. Develop a portfolio of 5 companies by either random selection or by using their Betas. The companies should be on either the NYSE or NASDAQ. Some of you may want to do a random selection, and then check the Betas to see whether randomness helped beat or match the S&P 500's Beta. (Assume S&P 500's Beta = 1.) Others may try to select stocks with the Betas uncorrelated or in different industries. You can calculate your portfolio's weighted average Beta and compare it to 1. Is your portfolio's Beta above 1 or below 1?

tips:(Remember that a Beta that is less than 1 is less volatile than the market; that is, stock prices change less quickly than the market index. If Beta > 1, the portfolio changes more rapidly than the market and is therefore more volatile than the market.) When you post your entry, please list your stocks by company name, their Betas, the portfolio's Beta, and whether you choserandomlyor by Betaselection.

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