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6-9: Portfolio Beta Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolios beta is 1.20. Suppose you
6-9: Portfolio Beta
- Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolios beta is 1.20. Suppose you sell one of the stocks with a beta of 0.8 for $5,000 and use the proceeds to buy another stock whose beta is 1.6. Calculate your portfolios new beta.
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
