|
|
| *Ostroff, Fair and Company>>>Investing |
Beta of a portfolio? |
How do i find the expected return and beta of a portfolio after the purchase of a new stock? to find the beta of your portfolio multiply the weights of your stocks in your protfolio by their betas and then add them up. Then use the Capital Asset Pricing Model to find the expected return. r = rf + 脽 (rm - rf) rf = the risk free rate, usually the yield on the 10 year treasury bond rm = the return on a market index, like the S&P 500, usually figured at 10 percent. 脽 = beta r = rate of return |
| Tags |
| Renting & Real Estate Personal Finance Investing Insurance Credit |
| Related information |
Finance Categories--Copyright/IP Policy--Contact Webmaster |