What will be the portfolio’s new beta

Reference no: EM131394028

Pete's investment portfolio contains five stocks that have a total value equal to $40,000. The beta coefficient of this portfolio is 1.2. Pete wants to invest an additional $10,000 in a stock that has beta equal to 2.2. After he adds this stock, what will be the portfolio's new beta?

Reference no: EM131394028

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