Jenna holds a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12 . Jenna plans to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80 . What will the portfolio's new beta be?
a. 1.286
b. 1.255
c. 1.224
d. 1.194
e. 1.165
e
Business
You might also like to view...
Which of the following problem-solving skills can best be described as the ability to anticipate the implications of executing a plan?
A. planning B. forecasting C. idea evaluation D. constraint analysis
Business
All of the following sentences use transitive verbs except _____?
A) ?The customer paid the bill with her credit card B) ?The CEO spoke at the small business seminar at the Plaza Hotel on Friday. C) Many students passed the anatomy and physiology exam.
Business
Design patents have a duration of ____ years
A)10? B) 14 C) 17 D) 20
Business
Compound interest is interest paid not only on the initial investment but also on any interest earned after the initial investment
Indicate whether the statement is true or false.
Business