EasyPortfolio & Risk
Beta of a Portfolio
J.P. MorganBlackRock
A portfolio is 60% in a stock with beta 1.2 and 40% in a stock with beta 0.8. What is the portfolio beta?
Approach
Weighted average — betas add linearly.
Answer
Show the final answer
The answer is 1.04. Sign in free for the full worked solution and to check your own answer.
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