Determine what will the portfolios new beta be

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Reference no: EM13335356

Jill angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is .88.

stock investment beta

a 50,000 .50

b 50,000 .80

c 50,000 1.0

d 50,000 1.20

total 200,000

if Jill replaces stock a with another stock, e, which has a beta of 1.30, what will the portfolio's new beta be?

Reference no: EM13335356

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