Question
Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875. Stock Investment Beta A $50,000 0 .50 B 50,000
Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.
| Stock | Investment | Beta |
| A | $50,000 | 0 .50 |
| B | 50,000 | 0 .80 |
| C | 50,000 | 1.00 |
| D | 50,000 | 1.20 |
| Total | $200,000 |
|
If Sherrie replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?
Answer: 1.13 PLEASE SHOW ME THE CORRECT FORMULA TO USE AND EACH AND EVERY STEP USING EXCEL
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How To Make Money With Junk Bonds
Authors: Robert Levine
1st Edition
007179381X,0071793828
