Question
You have a portfolio with a total value of $180,000 and a beta of 1.38. You have another $79,000 to invest and you want your
You have a portfolio with a total value of $180,000 and a beta of 1.38. You have another $79,000 to invest and you want your portfolio beta to drop to 1.31. Calculate What is the beta of the new investment ?
Step by Step Solution
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Step: 1
Beta of a portfolio is weighted average of the beta of ...
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
