Question
You have a $100,000 portfolio with a beta of 1.7. If you add $40,000 of a stock to the portfolio with a beta of 0.7,
You have a $100,000 portfolio with a beta of 1.7. If you add $40,000 of a stock to the portfolio with a beta of 0.7, what will be the beta of the new portfolio?
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A. 1.98
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B. 1.41
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C. 1.20
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D. 1.90
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
