Question
Willis currently has $120,000 invested in a portfolio of four stocks with a beat ratio equal to 0.8.Willis plans to sell one of the stocks
Willis currently has $120,000 invested in a portfolio of four stocks with a beat ratio equal to 0.8. Willis plans to sell one of the stocks in his portfolio for $48,000, which will increase the portfolio's beta to 1.0. What is the beta coefficient of the stock Willis plans to sell?
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To solve this problem we can use the formula for the weighted average beta of a portfolio Portfolio ...
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
