Question
Taio Noel holds the following portfolio: Stock Investment Beta A $185,250 1.40 B $99,750 0.80 C $109,250 1.00 D $80,750 1.20 Total $475,000 Taio plans
Taio Noel holds the following portfolio: Stock Investment Beta A $185,250 1.40 B $99,750 0.80 C $109,250 1.00 D $80,750 1.20 Total $475,000 Taio plans to sell Stock A and replace it with Stock E, which has a beta of 0.40. By how much will the portfolio beta change? Do not round your intermediate calculations.
a. -0.390
b. -0.250
c. -0.098
d. -0.156
e. -0.200
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
