Suppose you are the money manager of an investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $488,521 0.85 B $625,047 0 C $1,127,798 0.48 D $1,919,052 1.23 What is the beta coefficient of the portfolio?

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST3: The Stock Market: Its Function, Performance, And Potential As An Investment Opportunity
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Suppose you are the money manager of an investment fund. The fund consists of four
stocks with the following investments and betas:
Stock Investment Beta
A
$488,521 0.85
B
$625,047 0
C $1,127,798 0.48
D
$1,919,052 1.23
What is the beta coefficient of the portfolio?
Transcribed Image Text:Suppose you are the money manager of an investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $488,521 0.85 B $625,047 0 C $1,127,798 0.48 D $1,919,052 1.23 What is the beta coefficient of the portfolio?
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