Question
Petes investment portfolio contains five stocks that have a total value equal to $40,000. The beta coefficient of this portfolio is 1.2. Pete wants to
Petes investment portfolio contains five stocks that have a total value equal to $40,000. The beta coefficient of this portfolio is 1.2. Pete wants to invest an additional $10,000 in a stock that has beta equal to 2.2 After he adds this stock, what will be the portfolios new beta?
Please show your work. Thankyou!
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
