John invested the following amounts in three stocks:
Calculate the beta portfolio. Round the answers to two decimal places.
When constructing a portfolio, the weight of each asset is the ratio of the asset's market value to the portfolio's market value. These weights are used the calculate both the expected return on the asset as well as the variance of the portfolio returns.
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fromChapter 12 / Lesson 1
A portfolio can be designed in several different ways. It is important to understand the basics of a portfolio before building and managing one. In this lesson, we will go over the weight, return, and variance of a portfolio.