What will the portfolio new beta be

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Reference no: EM131129823

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80. What will the portfolio's new beta be?

a. 1.286

b. 1.255

c. 1.224

d. 1.194

e. 1.165

Reference no: EM131129823

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