Suppose you held a diversified portfolio consisting of a


Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.82. 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 1.69. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Suppose you held a diversified portfolio consisting of a
Reference No:- TGS02622065

Expected delivery within 24 Hours