Solved: What would be the portfolios new beta, Finance Basics

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What would be the portfolios new beta

Problem:

Suppose you hold a diversified portfolio consisting of $10,000 invested equally in each of 10 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: What would be the portfolios new beta

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Finance Basics: What would be the portfolios new beta

Reference No:- TGS02061294

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