Question
You have $2 million portfolio consisting of $100000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering
You have $2 million portfolio consisting of $100000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling 100000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will be the portfolios new beta be after these transactions?
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Cases In Healthcare Finance
Authors: Louis C. Gapenski
3rd Edition
1567932444, 9781567932447
