Question
Amari Noel holds the following portfolio: Stock Investment Beta A $146,250 1.40 B $71,250 0.80 C $112,500 1.00 D $45,000 1.20 Total $375,000 Amari plans
Amari Noel holds the following portfolio: Stock Investment Beta A $146,250 1.40 B $71,250 0.80 C $112,500 1.00 D $45,000 1.20 Total $375,000 Amari plans to sell Stock A and replace it with Stock E, which has a beta of 0.40. By how much will the portfolio beta change? Do not round your intermediate calculations.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
