Question
Suppose Stan holds a portfolio consisting of a $10,000 investment in each of 8 different common stocks, equally. The portfolio's beta is 1.25. Now suppose
Suppose Stan holds a portfolio consisting of a $10,000 investment in each of 8 different common stocks, equally. The portfolio's beta is 1.25. Now suppose Stan decided to sell one of his stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.35.
What is the portfolio's new beta?
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Entrepreneurial Finance
Authors: M. J. Alhabeeb
1st Edition
1118691512, 978-1118691519
