What is the beta of a portfolio consisting of one share of each of the following stocks given their respective prices and beta coefficients?
Stock Price Beta
A $10 1.4
B 24 0.8
C 41 1.3
D 19 1.8
How would the portfolio beta differ if:
a) the investor purchased 200 shares of stock B and C for every 100 share of A and D?
b) equal dollar amounts were invested in each stock?