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You have a portfolio that consists of a $5,000 investment in each of 20 different stocks. The beta of the portfolio is equal to 1.12.
You have a portfolio that consists of a $5,000 investment in each of 20 different stocks. The beta of the portfolio is equal to 1.12. You have decided to sell a coal mining stock (b = 1.00) for $5,000 net and use the proceeds to buy a similar number of shares of a mining rights company (b = 2.4).
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To calculate the new beta of the portfolio after selling the coal mining stock and buying shares of ...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
