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ou have a portfolio with a beta of 1.38. What will be the new portfolio beta if you keep 89 percent of your mone

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You have a portfolio with a beta of 1.38. What will be the new portfolio beta if you keep 89 percent of your money in the old portfolio and 11 percent in a stock with a beta of 0.59? (Round your answer to 2 decimal places.)

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