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Calculate the beta of a portfolio

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Reference no: EM133056548

The statistics below show standard deviation, correlation with the market and weights for a portfolio consisting of four securities.

 

SD (si)

Correlation (ri,M)

Weight

Xero Ltd

20%

0.75

23%

Afterpay Ltd

17%

0.60

37%

REA Group Ltd

14%

0.52

16%

CSK Ltd

16%

0.68

24%

Market

13%

 

 

 

 

 

 

Risk Free Rate

1.8%

 

 

Market Return

8.5%

 

 

REQUIRED

  1. Calculate the beta of a portfolio consisting of the four securities at the weights indicated.

Reference no: EM133056548

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