The stocks in the Problem #11 have the following betas. Stock Beta
A 1.1
B 0.6
C 1.0
D 1.6
E 0.8
Calculate Laurel’s portfolio beta for last year and for this year. Assume that the changes in investment (value) come from changing stock prices rather than buying and selling shares. What has happened to the riskiness of Laurel’s portfolio? Should she be concerned?