You purchase 400 shares of DEF Inc. common stock at a current price of $41 per share. You already own 140 shares of GHI Inc. common stock which has a market value of $34.11 per share. If DEF Inc. has a beta of 0.7 and GHI Inc. has a beta of 1.4, what will the portfolio beta be if you combine your DEF and GHI shares into a two-asset portfolio?

Answer rating: 100% (QA)

To calculate the portfolio beta you need to consider the weights of each asset in the portfolio and ... View the full answer