Question
Kerem Noel holds the following portfolio: Stock Investment Beta A $184,500 1.40 B $67,500 0.80 C $108,000 1.00 D $90,000 1.20 Total $450,000 Kerem plans
Kerem Noel holds the following portfolio: Stock Investment Beta A $184,500 1.40 B $67,500 0.80 C $108,000 1.00 D $90,000 1.20 Total $450,000 Kerem 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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
