Determine what would new portfolio beta that mr hatim holds

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Question 1: Mr. Hatim hold a diversified portfolio consisting of Pakistan State Oil, OGDC, Mobilink, Fauji Fertilizer Company, Zeal Pak Cement and KAPCO. He made an investment of Rs. 10,000 in each common stock. Beta of the portfolio is 1.17. After analyzing the market trends he decided to sell Zeal Pak Cement with a beta of 1.0 for Rs.10,000 and use the proceeds to buy Pakistan Tobacco Company with a beta of 1.65. On the basis of provided information what would be the new portfolio beta that Mr. Hatim holds?

Reference no: EM132569186

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