Jaycee Martinez
New member
Jerry's portfolio is invested equally in five stocks ( that is, each stock in the portfolio has a weight of 0.20) and has a required return of 9.4%. The risk free rate is 5%, and the market risk premium is 4%. What is the portfolio's Beta?
Is it 1.00, or am I missing another element here?
The 2nd part of the question is as follows:
The last stock added to this portfolio was ADP, Inc., which has a beta of 0.40. What was the portfolio's beta before ADP's stock was added?
A. 1.300
B. 1.275
C. 1.000
D. 1.225
E. 1.025
Thanks...
Is it 1.00, or am I missing another element here?
The 2nd part of the question is as follows:
The last stock added to this portfolio was ADP, Inc., which has a beta of 0.40. What was the portfolio's beta before ADP's stock was added?
A. 1.300
B. 1.275
C. 1.000
D. 1.225
E. 1.025
Thanks...