Overview
I'm working on a mathematics multi-part question and need the explanation and answer to help me learn.
eBook Problem Walk-Through Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.45. 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 1.10. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places. |