question archive After learning the course, you divide your portfolio into three equal parts, with one part in Treasury bills, one part in a market Index, and one part in a mutual fund with beta of 1,80
After learning the course, you divide your portfolio into three equal parts, with one part in Treasury bills, one part in a market Index, and one part in a mutual fund with beta of 1,80
Subject:FinancePrice:2.86 Bought7
After learning the course, you divide your portfolio into three equal parts, with one part in Treasury bills, one part in a market Index, and one part in a mutual fund with beta of 1,80. What is the beta of your overall portfolio?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Since treasury bills are risk free, their beta is 0
The beta of the market index is 1
Beta of the fund is 1.8
Portfolio beta = 1/3 x 0 + 1/3 x 1 + 1/3 x 1.8 = 0.9333
