Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose you held a diversified portfolio consistin

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20...

50.1K

Verified Solution

Question

Finance

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.65. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 1.20. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Explain in depth what mortgage securitization is Explain why we have money markets and their overall...

Geometry
1.2K views

The given plane intersects the following paraboloid in an ellipse. Find the points on the...

Statistics
1.2K views

At a local college 51 of the male students are smokers and 459 are non...

Accounting
1.2K views

Woody Company builds oak bookcases. Bolow are the costs incuured bv...

Accounting
1.2K views

Whispering Winds Company budgeted the following cost standards for the current year: Actual costs for...

Accounting
1.2K views

Company Z, an attest client, asks a member to provide bookkeeping services while an employee...

Accounting
1.2K views

Purpose Creating a career profile will allow you to gain the career clarity you need...

Accounting
1.2K views

The purpose of the post-closing trial balance is to: a. prove the equality of...

Accounting
1.2K views

Zerox provides a bundled service offering to Celox. It charges Celox $55 000 for initial...

Accounting
1.2K views

Need help with Part A? The management team of Novak Industries was evaluating...

Accounting
1.2K views

Lamar plans to buy a used truck that costs $20,000. The dealer requires a 20%...

Finance
1.2K views

A student takes out a loan of $1,900 at the beginning of each semester (semi-annually)...