Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88. Stock Investment Beta A $50,000 0.50 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total $200,000 If Jill replaces Stock A with another stock, E, which has a beta of 1.45, what will the portfolio's new beta be? Do not round your intermediate calculations. Select one: a. 1.28 b. 0.83 c. 1.39 d. 1.11 e. 1.22
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88. Stock Investment Beta A $50,000 0.50 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total $200,000 If Jill replaces Stock A with another stock, E, which has a beta of 1.45, what will the portfolio's new beta be? Do not round your intermediate calculations. Select one: a. 1.28 b. 0.83 c. 1.39 d. 1.11 e. 1.22
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 15MC
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Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88.
Stock |
Investment |
Beta |
||
A |
$50,000 |
0.50 |
||
B |
$50,000 |
0.80 |
||
C |
$50,000 |
1.00 |
||
D |
$50,000 |
1.20 |
||
Total |
$200,000 |
If Jill replaces Stock A with another stock, E, which has a beta of 1.45, what will the portfolio's new beta be? Do not round your intermediate calculations.
Select one:
a.
1.28
b.
0.83
c.
1.39
d.
1.11
e.
1.22
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