HelpYou have a portfolio with a beta of 1.74. What will be the new portfolio beta if you keep 89 percent of your money in the old portfolioand 11 percent in a stock with a beta of 0.74?Note: Do not round intermediate calculation and round your answer to 2 decimal places.New portfolio beta The NASDAQ stock market bubble peaked at 5,490 in 2000. Two and a half years later it had fallen to 1,395. What was the percentagedecline?Note: Negative answer should be indicated with a minus sign. Round your answer to 2 decimal places.Market decline%

Old portfolio weightage (W1) = 89% or 0.89Old portfolio Beta (B1) = 1.74Stock weightage (W2) = 11%…

You have a portfolio with a beta of 1.74. 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 0.74? Note: Do not round intermediate calculation and round your answer to 2 decimal places. New portfolio beta

You have a portfolio with a beta of 1.74. 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 0.74? Note: Do not round intermediate calculation and round your answer to 2 decimal places. New portfolio beta

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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Question

Help
You have a portfolio with a beta of 1.74. 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 0.74?
Note: Do not round intermediate calculation and round your answer to 2 decimal places.
New portfolio beta

The NASDAQ stock market bubble peaked at 5,490 in 2000. Two and a half years later it had fallen to 1,395. What was the percentage
decline?
Note: Negative answer should be indicated with a minus sign. Round your answer to 2 decimal places.
Market decline
%

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