Portfolio''s new beta., Financial Accounting

Assume you hold a diversified portfolio having of a $7,500 investment in every of 20 different common stocks. The portfolio's beta is 2.15. Now, assume you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 0.75. Determine your portfolio's new beta.

 

Posted Date: 3/30/2013 1:51:55 AM | Location : United States







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