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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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
