You currently own a portfolio valued at 16000 that has a


You currently own a portfolio valued at $16,000 that has a beta of 1.2. You have another $8,000 to invest and would like to invest it in a manner such that the risk of your portfolio matches that of the overall market. What does the beta of the new security have to be? (Please explain the calculation.)

a. 0.5

b. 0.9

c. 0.8

d. 0.3

e. 0.6

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You currently own a portfolio valued at 16000 that has a
Reference No:- TGS01161661

Expected delivery within 24 Hours