# A stock portfolio is made of 25% A, 20% B, 45% C and 10% D and the beta value of the stocks are 0.80, 0.94, 1.4 and 1.52 resp. What is the portfolio beta?

*print*Print*list*Cite

Expert Answers

justaguide | Certified Educator

The beta of a stock portfolio is the weighted average of the beta of each stock. If the beta value of A, B, C and D is 0.80, 0.94, 1.4, 1.52 respectively and the percentage of the portfolio made up by each of the stocks is 25%, 20%, 45% and 10% respectively the beta of the stock portfolio is 0.8*0.25 + 0.94*0.2 + 1.4*0.45 + 1.52*0.1 = 1.17

**The beta of the stock portfolio is 1.17.**