n NISM Certifications
XXI NISM Series XXI-A
Medium

Calculate the Portfolio Beta. Security P Beta = 1.71 , Security Q Beta = 0.65 , Assuming equal weights, what is the approximate portfolio beta?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    1.66

  2. 1.18

    Correct answer

  3. C

    1.03

  4. D

    0.74

Why this is the answer

(1.71 + 0.65) / 2 = 1.18

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