Assume there are no commission expenses for these trades


Randy Marsh holds the following portfolio:

           Stock             Investment          Beta

             A                 $150,000           1.40

             B                   50,000           0.80

             C                  100,000           1.00

             D                  75,000           1.20

           Total                375,000

Randy decides to sell half of his investment in Stock C, and use the proceeds to purchase the proceeds towards buying more of stock B. Assume there are no commission expenses for these trades. After these two trades, what is Randy’s portfolio beta?  (Round middle steps to at least 4 decimal places)

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Financial Management: Assume there are no commission expenses for these trades
Reference No:- TGS02309192

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