Respuesta :
0.927 is the portfolio beta.
What is portfolio beta?
The beta of a portfolio acts as a stand-in for the portfolio's overall systemic risk. The weighted average of the beta coefficients for each individual share in the portfolio is what it is comparable to.
Total investment = 9000 + 5000 + 8000
= 22000
weightage of 9000 = 9000 /22000 = 0.409 * 0.7 = 0.286
Weightage of 5000 = 5000 / 22000 = 0.227 * 0.9 = 0.204
weightage of 8000 = 8000 / 22000 = 0.363 * 1.2 = 0.436
Portfolio beta = 0.286 + 0.204 + 0.436 = 0.927
What are high-beta stocks?
Simply put, a high-beta stock is one that has historically been substantially more volatile than the index it is compared to. A stock is often regarded as having a high beta if its beta value is above 2, which indicates that it typically moves twice as much as the market.
Learn more about portfolio beta: https://brainly.com/question/18760065
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