Rf=2%, Rm= 10%

An equal weighted portfolio of stock X and Rf yields a return of 10%

A portfolio of stock Y and Rf with a 75% investment in stock Y yields a return of 6.5%

What is the market beta of a portfolio if we invest 40%in X, 20% in Y, 20% in Rf and 20% in the market?

Answer rating: 100% (QA)

To calculate the market beta of a portfolio we need to consider the beta values of the individual as... View the full answer