Question: Dr. Zweibel's portfolio consists of four stocks: AZMN 35%, beta 2.4; MKR 20%, beta 1.6; ABDE, 25%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor?  Edit

Answer: Portfolio Beta = Weights of individual stocks*beta of individual stock
= 35%*2.4+20%*1.6+25%*1.8+20%*2.1
= 2.03
The investor seems to be an aggressive investor as the beta of the portfolio is more than 1, indicating that the investor is wiling ti take risk.
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