Question
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88. Stock Investment Beta A $50,000 0.60 B $50,000 0.90
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88.
| Stock |
| Investment |
| Beta |
| A |
| $50,000 |
| 0.60 |
| B |
| $50,000 |
| 0.90 |
| C |
| $50,000 |
| 1.10 |
| D |
| $50,000 |
| 1.30 |
| Total |
| $200,000 |
|
|
If Jill replaces Stock A with another stock, E, which has a beta of 1.00, what will the portfolio's new beta be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cryptocurrency And Public Policy
Authors: Donavon Johnson
1st Edition
1032311231, 978-1032311234
