Question
Your retirement fund consists of a $10,000 investment in each of 16 different common stocks. The portfolio's 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 portfolio's 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 portfolio's new beta.
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
