What will be the new portfolio beta if you keep 10 percent


1. Portfolio Beta You have a portfolio with a beta of 2.44. What will be the new portfolio beta if you keep 10 percent of your money in the old portfolio and 90 percent in a stock with a beta of 2.69?

2.665

1.00

5.13

2.565

2. Portfolio Beta You own $1,600 of City Steel stock that has a beta of 1.63. You also own $6,300 of Rent-N-Co (beta = 1.93) and $5,300 of Lincoln Corporation (beta = 1.03). What is the beta of your portfolio (closest to)?

1.53

1.00

3.24

4.59

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Financial Management: What will be the new portfolio beta if you keep 10 percent
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