Over the past several weeks you have assembled a small stock portfolio via the purchase of...
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Over the past several weeks you have assembled a small stock portfolio via the purchase of small amounts of different company stocks. You know that the point of a portfolio is to reduce your overall exposure to systematic risk, but aren't sure exactly what the risk of your new portfolio is. You have purchased the following: $9,000 of Tesla Stock, $10,000 of McDonald's Stock, and $7,000 of Boeing Stock. You have estimated the betas of these stocks to be the following: a 3 of 3.48 for Tesla, a 3 of 2.08 for McDonald's, and a 3 of 2.2 for Boeing. What is the beta of your portfolio? (Round to 2 decimals) Answer: Over the past several weeks you have assembled a small stock portfolio via the purchase of small amounts of different company stocks. You know that the point of a portfolio is to reduce your overall exposure to systematic risk, but aren't sure exactly what the risk of your new portfolio is. You have purchased the following: $9,000 of Tesla Stock, $10,000 of McDonald's Stock, and $7,000 of Boeing Stock. You have estimated the betas of these stocks to be the following: a 3 of 3.48 for Tesla, a 3 of 2.08 for McDonald's, and a 3 of 2.2 for Boeing. What is the beta of your portfolio? (Round to 2 decimals) Answer:
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To calculate the beta of your portfolio you need to consider the beta of each stock and their respec... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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