Answer:
0.9
Explanation:
For the computation of portfolio beta first we need to follow some steps which is shown below:-
Step 1
Total Portfolio value = Value of Alpha + Value of Beta + Value of Gamma + Value of Delta
= $50,000 + $50,000 + $50,000 + $50,000
= $200,000
Step 2
Weight of Alpha = Value of Alpha ÷ Total Portfolio Value
= $50,000 ÷ $200,000
= 0.25
Step 3
Weight of Beta = Value of Beta ÷ Total Portfolio Value
= $50,000 ÷ $200,000
= 0.25
Step 4
Weight of Gamma = Value of Gamma ÷ Total Portfolio Value
= $50,000 ÷ $200,000
= 0.25
Step 5
Weight of Delta = Value of Delta ÷ Total Portfolio Value
= $50,000 ÷ $200,000
= 0.25
and finally
Beta of Portfolio = Weight of Alpha × Beta of Alpha + Weight of Beta × Beta of Beta + Weight of Gamma × Beta of Gamma + Weight of Delta × Beta of Delta
= 0.5 × 0.25 + 0.8 × 0.25 + 1 × 0.25 + 1.3 × 0.25
= 0.9