What is the beta of stock


Problem:

Your portfolio has a beta of 1.29. The portfolio consists of 14 percent U.S. Treasury bills, 31 percent in stock A, and 55 percent in stock B. Stock A has a risk-level equivalent to that of the overall market.

Required:

Question: What is the beta of stock B?

  • 1.41
  • 1.10
  • 0.55
  • 1.78
  • 1.35

Note: Explain all calculation and formulas.

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Accounting Basics: What is the beta of stock
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