Portfolio Beta Your retirement fund consists of a $7,000 investment in each of 12 different common stocks. The portfolio's beta is 1.50. Suppose you sell one of the stocks with a beta of 0.9 for $7,000 and use the proceeds to buy another stock whose beta is 2.0. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Portfolio Beta Your retirement fund consists of a $7,000 investment in each of 12 different common stocks. The portfolio's beta is 1.50. Suppose you sell one of the stocks with a beta of 0.9 for $7,000 and use the proceeds to buy another stock whose beta is 2.0. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 9P
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![Portfolio Beta Your retirement
fund consists of a $7,000
investment in each of 12
different common stocks. The
portfolio's beta is 1.50. Suppose
you sell one of the stocks with a
beta of 0.9 for $7,000 and use
the proceeds to buy another
stock whose beta is 2.0.
Calculate your portfolio's new
beta. Do not round intermediate
calculations. Round your answer
to two decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf75aa1d-c7e3-48ec-a3f1-b0c28c2719ba%2F1ced8f65-eb2d-4d68-a9b4-f93aeea52382%2Fggp13c_processed.png&w=3840&q=75)
Transcribed Image Text:Portfolio Beta Your retirement
fund consists of a $7,000
investment in each of 12
different common stocks. The
portfolio's beta is 1.50. Suppose
you sell one of the stocks with a
beta of 0.9 for $7,000 and use
the proceeds to buy another
stock whose beta is 2.0.
Calculate your portfolio's new
beta. Do not round intermediate
calculations. Round your answer
to two decimal places.
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