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Your current portfolio has a total value of $95,000, is well-diversified and has an expected return of 16.5% and a beta of 1.02. You are
Your current portfolio has a total value of $95,000, is well-diversified and has an expected return of 16.5% and a beta of 1.02. You are in the process of buying 1,000 shares of Alpha Corp at $12 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.75. What will be the expected return on the NEW portfolio after the purchase of the Alpha stock? What will be the expected Beta on the NEW portfolio after the purchase of the Alpha stock?
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