Calculating the portfolio new beta, Finance Basics

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Calculating the portfolio new beta

Suppose you hold a diversified portfolio consisting of $7,500 invested equally in each of 20 different common stocks. The portfolio's beta is 1.120. Now suppose you decided to sell one of your stocks that has a beta of 1.000 and to use the proceeds to buy a replacement stock with a beta of 1.750. What would the portfolio's new beta be?

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Finance Basics: Calculating the portfolio new beta

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Finance Basics: Calculating the portfolio new beta

Reference No:- TGS053206

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Recent Questions Asked Finance Basics

Q : Calculating the portfolio beta

Q : Determine which factors were important in declines

Q : Attention seems to be at the front end of perception

Q : Amount of deferred income tax problem

Q : Calculating the portfolio new beta

Q : Prepare the consolidated journal entries

Q : Explain independent agency of government

Q : Quick ratio and fixed assets turnover ratio

Q : Income tax for financial reporting book purposes

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculating the portfolio new beta

Reference No:- TGS053206

Recent Questions Asked Finance Basics

Q : Calculating the portfolio beta

Q : Determine which factors were important in declines

Q : Attention seems to be at the front end of perception

Q : Amount of deferred income tax problem

Q : Calculating the portfolio new beta

Q : Prepare the consolidated journal entries

Q : Explain independent agency of government

Q : Quick ratio and fixed assets turnover ratio

Q : Income tax for financial reporting book purposes

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