Question
Please show work! :) Anna holds a diversified $1,000,000 portfolio consisting of 10 stocks with $100,000 invested in each. The portfolios beta is 1.12. She
Please show work! :)
Anna holds a diversified $1,000,000 portfolio consisting of 10 stocks with $100,000 invested in each. The portfolios beta is 1.12. She plans to sell the stock with beta=0.90 and use the proceeds to buy a new stock with beta=1.50. What will the portfolios new beta be if she replaces the old stock with the new one?
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
