Question
Your retirement fund consists of a $10,000 investment in each of 16 different common stocks. The portfolios beta is 1.50. Suppose you sell one of
Your retirement fund consists of a $10,000 investment in each of 16 different common stocks. The portfolios beta is 1.50. Suppose you sell one of the stocks with a beta of 0.8 for $10,000 and use the proceeds to buy another stock whose beta is 1.6. Calculate your portfolios new beta.
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
