n NISM Certifications
X NISM Series X
Medium

The beta of a portfolio composed of securities A, B, C, and D with weights 20%, 30%, 15%, and 35% and betas 1.5, 2, 1.75, and 0.9 respectively is:

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 1.48

    Correct answer

  2. B

    1.5

  3. C

    1.9

  4. D

    1.75

Why this is the answer

Portfolio beta = (0.2*1.5)+(0.3*2)+(0.15*1.75)+(0.35*0.9)=1.48.

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