Question
Stock: A; Investment: $150,00; Beta: 1.50 Stock: B; Investment: $150,000; Beta: 1.80 Stock: C; Investment: $175,000; Beta: 0.75 Stock: D; Investment: $175,000; Beta: 0.20 Total
Stock: A; Investment: $150,00; Beta: 1.50 Stock: B; Investment: $150,000; Beta: 1.80 Stock: C; Investment: $175,000; Beta: 0.75 Stock: D; Investment: $175,000; Beta: 0.20 Total Investment Amount: $650,000 Portfolio's Beta: 1.0173 If Sherrie replaces Stock A with another stock, E, which has a beta of 2.50, what will the portfolio's new beta be?
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
