A (beta=0.6), B(beta=1.6)
2007-11-04 08:18:57 · 2 answers · asked by Rocio T 2 in Business & Finance ➔ Investing
The beta of a portfolio is equal to a market weighted average of the betas of the assets. Since you are putting the same amount in both A and B, the beta will be the average. That is a beta of 1.1
The beta of the risk free asset is zero. The beta of the market portfolio is -- but definition -- one.
2007-11-04 09:02:55 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
you do not have adequate capital to correctly make investments it in only 3 stocks. I advise perhaps 4 or 5 ETFs or mutual money. All funding has disadvantages, yet 3 stocks is too volatile for the length portfolio your advise. What danger-loose asset? All sources contain some danger. Even a T-bill has an inflation danger.
2016-10-23 09:44:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋