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Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's...

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Finance

Your retirement fundconsists of a $7,500 investment in each of 20 different commonstocks. The portfolio's beta is 1.95. Now, suppose you sell one ofthe stocks with a beta of 1.0 for $7,500 and use the proceeds tobuy another stock whose beta is 2.05. Calculate your portfolio'snew beta. Do not round intermediate calculations. Round your answerto two decimal places.

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3.6 Ratings (311 Votes)
Investment in Each Stock 7500 Number of Stocks 20 Portfolio Value 20 x 7500 150000 Portfolio Beta 195 A stock with beta 1 and investment value 7500 is removed from the    See Answer
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Your retirement fundconsists of a $7,500 investment in each of 20 different commonstocks. The portfolio's beta is 1.95. Now, suppose you sell one ofthe stocks with a beta of 1.0 for $7,500 and use the proceeds tobuy another stock whose beta is 2.05. Calculate your portfolio'snew beta. Do not round intermediate calculations. Round your answerto two decimal places.

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