NC Corp. holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0. If NC Corp. sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be
NC Corp. holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0. If NC Corp. sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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NC Corp. holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0. If NC Corp. sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be:
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