You hold a diversified portfolio consisting of a $15,082 invested in each of 5 different common stocks. The portfolio beta is equal to 1.13. You have decided to sell one of your stocks that has a beta equal to 0.8 for $15,082. You plan to use the proceeds to purchase another stock that has a beta equal to 1.9. What will be the beta of the new portfolio? O 1.45 O 1.75 O 1.35 O 1.65 O 1.55 4 27
You hold a diversified portfolio consisting of a $15,082 invested in each of 5 different common stocks. The portfolio beta is equal to 1.13. You have decided to sell one of your stocks that has a beta equal to 0.8 for $15,082. You plan to use the proceeds to purchase another stock that has a beta equal to 1.9. What will be the beta of the new portfolio? O 1.45 O 1.75 O 1.35 O 1.65 O 1.55 4 27
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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Transcribed Image Text:You hold a diversified portfolio consisting of a $15,082 invested in each of 5 different
common stocks. The portfolio beta is equal to 1.13. You have decided to sell one of your
stocks that has a beta equal to 0.8 for $15,082. You plan to use the proceeds to purchase
another stock that has a beta equal to 1.9. What will be the beta of the new portfolio?
O 1.45
O 1.75
O 1.35
O 1.65
O 1.55
27
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