What is her portfolio beta and portfolio new beta be

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1. An individual has $15,000 invested in a stock with a beta of 0.6 and another $70,000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.

2. Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.07. 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 0.71. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131991188

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