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you have a portfolio that is equally invested in stock f with a beta of .99, stock g with a beta of 1.41, and the market. what is the beta of your portfolio?

User Kannanrbk
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Final answer:

The beta of the portfolio that is equally invested in Stock F with a beta of .99, Stock G with a beta of 1.41, and the market is 1.13.

Step-by-step explanation:

The question is focused on calculating the beta of a portfolio that is equally invested in two stocks, each with their own beta values, and the market, which has a beta of 1 by definition.

Since the portfolio is equally invested, you can find the portfolio's beta by taking the average of the betas of the individual investments.

Here, Stock F has a beta of 0.99, Stock G has a beta of 1.41, and the market's beta is 1.

The portfolio's beta would be the average of these three numbers: (0.99 + 1.41 + 1) / 3 = 1.13.

Thus, the portfolio beta is 1.13, which indicates that it is slightly more volatile than the market.

User Jeebface
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