Question
LeBron holds the following portfolio: A $100,000 [Investment] 1.40 [beta] B $100,000 0.70 C $200,000 1.60 D $200,000 2.00 Total $600,000 LeBron plans to sell
LeBron holds the following portfolio:
A $100,000 [Investment] 1.40 [beta]
B $100,000 0.70
C $200,000 1.60
D $200,000 2.00
Total $600,000
LeBron plans to sell Stock C and replace it with Stock E, which has a beta of 0.80. By how much will the portfolio beta change? PLEASE show calculations!!!
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
