If jill replaces stock a with another stock e which has a

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Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.

Stock

Investment

Beta

A

$ 50,000

0.50

B

50,000

0.80

C

50,000

1.00

D

50,000

1.20

Total

$200,000

 

If Jill replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?

Reference no: EM13485555

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