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Portfolio Weights and Diversification for Karen's portfolio

Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the technolgy field?

A financial planner is examining the portfolios held by several of her clients. The portfolios are described below. Identify which portfolio is less likely to have the smallest standard deviation-

A portfolio consisting of about 30 technology stocks
A portfolio consisting of Microsoft, Apple, Computer, and Google
A portfolio consisting of about 3 randomly selected stocks
A portfolio containing only Microsoft stock
A portfolio consisting of about 30 randomly selected stocks

Solution Preview

Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the ...

Solution Summary

Portfolio weights and diversification for Karen's portfolio are examined. A financial planner is examined.

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