In your portfolio, you have two stocks. You have a 50% investments in Stock A and 50%
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In your portfolio, you have two stocks. You have a 50% investments in Stock A and 50% investment in Stock B. Stock A has a standard deviation of 25% and a beta of 1.2. Stock B has a standard deviation of 35% and a beta of 0.80. The correlation between Stock A and Stock B is 0.4.
What is the beta of the portfolio?
Expert Answer:
Answer rating: 100% (QA)
To calculate the beta of a portfolio you can use the following formula betaportfolio wA b... View the full answer
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