Calculating portfolio return and portfolio beta

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Question - Calculating Portfolio Return and Portfolio Beta: In the table below, the total equity market value, beta, and equity security return is listed for four individual equity securities. Assume you create a portfolio with these four securities. Calculate the return to the portfolio and the beta for the portfolio.

 

Firm 1

Firm 2

Firm 3

Firm 4

Total firm equity market value (in millions)

$990

$3,675

$2,714

$581

Firm Beta

0.78

1.06

0.96

1.47

Firm security return

5.8%

6.5%

7.7%

8.3%

Reference no: EM132925601

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