Question
2. Tom Noel holds the following portfolio: Stock Investment Beta A $150,000 1.40 B $50,000 0.80 C $100,000 1.00 D $75,000 1.20 Total $375,000 Tom
2. Tom Noel holds the following portfolio:
| Stock | Investment | Beta | ||
| A | $150,000 | 1.40 | ||
| B | $50,000 | 0.80 | ||
| C | $100,000 | 1.00 | ||
| D | $75,000 | 1.20 | ||
| Total | $375,000 |
Tom plans to sell Stock A and replace it with Stock E, which has a beta of 0.83. By how much will the portfolio beta change? Do not round your intermediate calculations.
| a. | 0.219 | ||
| b. | 0.228 | ||
| c. |
| ||
| d. | 0.251 |
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Financial Management In The Sport Industry
Authors: Brown T Matthew
2nd Edition
041579000X, 9780415790000
