Q5. Chapters 9-12 .Jill Angel holds a $200,000 portfolio consisting of the following stocks. The...
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Accounting
Q5. Chapters 9-12
.Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88.
| Stock |
| Investment |
| Beta |
| A |
| $50,000 |
| 0.50 |
| B |
| $50,000 |
| 0.80 |
| C |
| $50,000 |
| 1.00 |
| D |
| $50,000 |
| 1.20 |
| Total |
| $200,000 |
|
|
If Jill replaces Stock A with another stock, E, which has a beta of 1.00, what will the portfolio's new beta be? Do not round your intermediate calculations.
Group of answer choices
*0.85
*1.10
*1.20
*0.80
*1.00
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