Answer:
Beta of stock T is 0.0152
Explanation:
Given data:
weight of stock R is 17%
weight of stock S is 38%
hence weight of stock T is = 100 - (17+38) = 45%
Beta of stock R is = 0.62
Beta of stock S is = 1.17
Beta of portfolio is 1.28
we know beta of portfolio is given as
Beta of portfolio = weight of R × Beta of R + weight of S × Beta of S +weight of T × Beta of T
putting all value to get desired value of Beta of T[tex]1.28 = .17\times 0.62 + .38 \times 1.17 + 48 \times Beta_T[/tex]
Beta of stock T is 0.0152
