Question
Bill Johnson manages a diversified portfolio consisting of a $11,565 investment in each of 14 different common stocks. The portfolio's beta is 1.07. Now suppose
Bill Johnson manages a diversified portfolio consisting of a $11,565 investment in each of 14 different common stocks. The portfolio's beta is 1.07. Now suppose Bill decided to sell one of the stocks in the portfolio with a beta or 1.5 for $11,565 and use the proceeds to buy another stock with a beta of 1.42. What would the portfolio's new beta be?
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Corporate Finance Governance And Business Cycles Theory And International Comparisons
Authors: Robert E. Krainer
1st Edition
0444510494, 9780444510495
