What is the total risk of this portfolio

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Reference no: EM131014518

A portfolio consists of 4 securities

Security 1: Beta= 1.2 Standard deviation of random error term=5% Proportion=.10

Security 2: Beta=1.03 Standard deviation of random error term= 7% Proportion = .10

Security 3: Beta= 1.05 Standard deviation of random error term=8% Proportion=.50

Security 4: Beta= .90 Standard deviation of random error term= 2% Proportion= .30

The standard deviation of the market index is 15%. What is the total risk of this portfolio?

Reference no: EM131014518

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