Question
Portfolio Beta Your retirement fund consists of a $7,000 investment in each of 12 different common stocks. The portfolio's beta is 1.10. Suppose you sell
Portfolio Beta
Your retirement fund consists of a $7,000 investment in each of 12 different common stocks. The portfolio's beta is 1.10. Suppose you sell one of the stocks with a beta of 0.8 for $7,000 and use the proceeds to buy another stock whose beta is 1.3. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
