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You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.c and use the proceeds to buy a new stock with b 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. Oa. 1.093 Ob. 1.127 Oc. 1.242 d. 1.150 Oe. 1.185 O O O

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.c and use the proceeds to buy a new stock with b 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. Oa. 1.093 Ob. 1.127 Oc. 1.242 d. 1.150 Oe. 1.185 O O O

Essentials Of Investments
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
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You hold a diversified $100,0o0 portfolio consisting of 20 stocks with $5,00o invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.C and use the proceeds to buy a new stock with b = 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. O a. 1.093 O b. 1.127 O c. 1.242 d. 1.150 O e. 1.185
Transcribed Image Text:You hold a diversified $100,0o0 portfolio consisting of 20 stocks with $5,00o invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.C and use the proceeds to buy a new stock with b = 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. O a. 1.093 O b. 1.127 O c. 1.242 d. 1.150 O e. 1.185
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