Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.95. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.55. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.95. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.55. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 13PROB

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