Suppose you have 40 of your portfolio invested in firm A 30 in-02003
This subjective question is related to the book/course
vu mgt501 Human Resource Management.
It can also be found in
vu mgt501 Mid Term Solved Past Paper No. 1.
Question 1: Suppose you have 40% of your portfolio invested in firm A, 30% in firm B, 20% in firmC, and 10% in firm D. You know that the betas for these firms are, respectively, 1.2, 1.4,0.8, and 1.1. Calculate your portfolio beta.
Answer:
(0.4 * 1.2) + (0.3 * 1.4) + (0.2 * 0.8) + (0.1 * 1.1) = 0.48 + 0.42 +0.16+0.11 = 1.17
