Edgar invested $600 in Stock F and $400 in Stock G. Stock F's beta is 1.2 and Stock G's beta is0.90. What is the beta of Edgar's portfolio?
Question
Solution 1
To calculate the beta of Edgar's portfolio, we need to take into account the proportion of the total investment that each stock represents and their respective betas.
Here are the steps:

Calculate the total investment: $600 (Stock F) +$400 (Stock G) = $1000.

Calculate the proportion of th Knowee AI is a powerful AIpowered study tool designed to help you to solve study problem.
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