Question
Janine c urrently has an invest ment portf olio that contain s four stoc ks with a total value equal to P120,000. The portf olio
Janine c urrently has an invest ment portf olio that contain s four stoc ks with a total value equal to P120,000. The portf olio has a beta equal to 1.8. Janine wants to invest an addi tional P80,000 in a stock that has be ta equal to 2. After Janine adds the ne w stock to his portf olio, what is the portfolio's beta?
5. If the risk- free rate is 6 perc ent, the expe cted ret urn on the market is 12 percent, and the required rate of r eturn on Security X is 15 perc ent, what is the beta of Security X?
6. Mon currently has an inve stment portfo lio that contains 10 stocks that have a total va lue equal to P200,000. The port folio has a beta equal to 1.2. Mon wants to invest an addi tional P40,000 in a s tock with be ta equal to 3.0. After Mon ad ds the ne w stock to his portfolio, wha t will be the po rtfolio's beta?
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