You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings per table below. What is the beta on each portfilio and which portfolio is riskier? a. -.05, 1.30. First portfolio is riskier b. .05, -1.30. Second portfolio is riskier c. 1.30, -.05. First portfolio is riskier d. -.05, 1.30. Second portfolio is riskier 1 0 0 0 0 a.. b.. C.. d.. Asset A ܕ ܗ ܘ ܗ Given Beta 2.5 1.0 0.5 -1.5 First Portfolio 10% 10% 40% 40% Second Portfolio 40% 40% 10% 10%

You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings per table below. What is the beta on each portfilio and which portfolio is riskier? a. -.05, 1.30. First portfolio is riskier b. .05, -1.30. Second portfolio is riskier c. 1.30, -.05. First portfolio is riskier d. -.05, 1.30. Second portfolio is riskier 1 0 0 0 0 a.. b.. C.. d.. Asset A ܕ ܗ ܘ ܗ Given Beta 2.5 1.0 0.5 -1.5 First Portfolio 10% 10% 40% 40% Second Portfolio 40% 40% 10% 10%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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