Question
You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.22. You plan to sell
You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.22. You plan to sell a stock with b = 0.60 and use the proceeds to buy a new stock with b = 1.60. What will the portfolio's new beta be? Do not round your intermediate calculations. O a. 1.300 b. 1.600 c. 1.410 d. 1.250 e. 1.270
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
