FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have a portfolio with a beta of 1.66. What will be the new portfolio beta if you keep 90 percent of your money in

You have a portfolio with a beta of 1.66. What will be the new portfolio beta if you keep 90 percent of your money in the old portfolio and 10 percent in a stock with a beta of 0.81? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

New portfolio beta

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Advanced Accounting

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

11th edition

538480289, 978-0538480284

Students also viewed these Finance questions

Question

Describe positive and negative influences of technology on the learning and development of children and adolescents.

Answered: 1 week ago

Question

★★★★★
An investment with total costs of $10,000 will generate total revenues of $11,000 for one year. Management thinks that since the investment is profitable, it should be made. Do you agree? What...

Answered: 1 week ago

Question

★★★★★
i only need the last Q answer please

Answered: 1 week ago

Question

★★★★★
Consider a 15-year mortgage with a 3% APR interest rate and a 20% down payment. If you can afford a $1500 monthly payment, how expensive a house can you buy? O $298,402 O $217,208 $254,250 $271,510

Answered: 1 week ago

Question

★★★★★
What is one of the skills required for independent learning?Explain

Answered: 1 week ago

Question

★★★★★
Discuss in the following in detail: we are understanding what big data is, and what is driving the data deluge. From your personal knowledge and research, what other factors do you believe may drive...

Answered: 1 week ago

Question

★★★★★
Two Registered Nurses (RNs) are available to triage and enter any pre-existing medical conditions that must be noted for vaccination. The first RN is using a faster laptop and completes screening in...

Answered: 1 week ago

Question

★★★★★
Fresh Bites manufactures Caesar salads. In January, the company initially budgeted to purchase and use 20,000 kilograms of lettuce at $1.18 per kilogram, with a budgeted A output of 70,000 salads....

Answered: 1 week ago

Question

★★★★★
Basic exception handling is required. It's your responsibility to ensure that any thrown exceptions are handled gracefully and do not crash the program. Any program you write should be thoroughly...

Answered: 1 week ago

Previous Question Next Question