Check my answer

Your client has the following portfolio:

Company # of Shares

CNTY 5000

ARQL 2000

XSPY 27000

GMLP 3000

APPS 5000

CBPO 200

TXMD 750

TTS 1250

Using available resources, determine this portfolio's beta.

Once you have determined the portfolio beta, determine what adjustments must be made to achieve a portfolio beta of 1.25 maintaining the dollar value of the porfolio within $200 of it's pre-adjusted value. In addition, your client wishes to keep all of these equities in their portfolio without adding any new equities with no less than 250 shares of each equity.

answer

Data gathered from		nasdaq.com
Company	# of shares	PPS	Value	Weight	Beta	Weighted beta
CNTY	5000	$ 7.38	$ 36,900.00	0.2290090549	1.55	0.355
ARQL	2000	$ 1.25	$ 2,500.00	0.01551551862	2.01	0.031
XSPY	27000	$ 0.10	$ 2,700.00	0.01675676011	0	0.000
GMLP	3000	$ 20.55	$ 61,650.00	0.3826126892	0.9	0.344
APPS	5000	$ 1.08	$ 5,400.00	0.03351352022	0.42	0.014
CBPO	200	$ 112.62	$ 22,524.00	0.1397886166	1.17	0.164
TXMD	750	$ 5.69	$ 4,267.50	0.02648499029	0.89	0.024
TTS	1250	$ 20.15	$ 25,187.50	0.1563188501	1.95	0.305
total	44200		$ 161,129.00			1.237