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Sagot :
Answer:
1.03
Explanation:
Beta is used to measure systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors.
Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
Stock Q = 0.35 x 1.34 = 0.469
Stock R = 0.25 X 0.88 = 0.22
Stock S = 0.15 x 0.57 = 0.0855
Stock T = 0.25 x 1.02 = 0.255
Portfolio beta = 0.469 + 0.22 + 0.0855 + 0.255 = 1.0295 = 1.03
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