
CFIN
5th Edition
ISBN: 9781305661639
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 8, Problem 13PROB
Summary Introduction
Portfolio beta is used to measure the portfolio’s overall systematic risk of an investment which equals the weighted average of all individual stock’s beta coefficient in a portfolio.
The amount of $200,000 invested in six stocks and its portfolio’s beta coefficient is equal to 1.5. The value of the stock which is to be sold is $40,000. After sale the portfolio beta is 1.3.
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