Question
Suppose you have a diversified portfolio consisting of $10,000 investment in each of 10 different stocks. The portfolios beta is 1.12. You are considering selling
Suppose you have a diversified portfolio consisting of $10,000 investment in each of 10 different stocks. The portfolios beta is 1.12. You are considering selling $10,000 worth of one stock with a beta of 1.0 and using the proceeds to buy another stock with a beta of 1.14. What is the new beta of portfolio after these transactions?
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Project Financing Asset-Based Financial Engineering
Authors: John D Finnerty
3rd Edition
1118421841, 9781118421840
