question archive You own $10,000 of Olympic Steel stock that has a beta of 2
You own $10,000 of Olympic Steel stock that has a beta of 2
Subject:FinancePrice:2.87 Bought7
You own $10,000 of Olympic Steel stock that has a beta of 2.2. You also own $7,000 of Rent-a-Center (beta = 1.5) and $8,000 of Lincoln Educational (beta = 0.5).
What is the beta of your portfolio?
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Ans 1.46
| Stock | BETA | Investment | BETA * Investment |
| Olympic Steel | 2.20 | 10000.00 | 22000.00 |
| Rent-a-Center | 1.50 | 7000.00 | 10500.00 |
| Lincoln Educational | 0.50 | 8000.00 | 4000.00 |
| Total | 25000.00 | 36500.00 | |
| Average Beta = | (Beta* investment) / Total Investment | ||
| 36500 / 25000 | |||
| 1.46 | |||
