What would be the portfolios new beta


Question:

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.65. What would the portfolio's new beta be?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What would be the portfolios new beta
Reference No:- TGS02047083

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)