Question
A stock you are interested in has a beta of 5. The total value of your portfolio is $200,000 and you decide to invest another
A stock you are interested in has a beta of 5. The total value of your portfolio is $200,000 and you decide to invest another $50,000 in this stock.
a.the current beta of your portfolio is 2.5 . What will be the beta of your new portfolio?
b. The risk free rate is 6% and the expected return on the market is 15% . What is the expected return on your new portfolio?
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Seeing Through Statistics
Authors: Jessica M.Utts
4th Edition
1285050886, 978-1305176249, 1305176243, 978-1305322394, 978-1285050881
