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What will be the beta of the new portfolio

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Reference no: EM132849825

Question - You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e., your total investment is $150,000). The portfolio beta is equal to 1.2. You have decided to sell one of your stocks which has a beta equal to 2.2 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 0.9. What will be the beta of the new portfolio? Show your answer to 2 decimal places.

Reference no: EM132849825

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