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You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different...

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Finance

You have a $2 million portfolio consisting of a $100,000investment in each of 20 different stocks. The portfolio has a betaof 1.05. You are considering selling $100,000 worth of one stockwith a beta of 1.15 and using the proceeds to purchase anotherstock with a beta of 1.3. What will the portfolio's new beta beafter these transactions? Do not round intermediate calculations.Round your answer to two decimal places.

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Answer As given in question a Total amount of Portfolio 2000000 b No of stocks 20 c Amount invested in each stock 100000 d Beta of portfolio 105 e Beta of selling    See Answer
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You have a $2 million portfolio consisting of a $100,000investment in each of 20 different stocks. The portfolio has a betaof 1.05. You are considering selling $100,000 worth of one stockwith a beta of 1.15 and using the proceeds to purchase anotherstock with a beta of 1.3. What will the portfolio's new beta beafter these transactions? Do not round intermediate calculations.Round your answer to two decimal places.

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