Elephant Company has the following stocks: a. What is the portfolio beta? b. If the company sells

Question:

Elephant Company has the following stocks:

a. What is the portfolio beta?
b. If the company sells all zibra.com stock and invests the total in the new stock called Chitta.com, which has a beta of 1.35, what will be the new portfoliobeta?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...