Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.31. 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 0.97. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A true market economy operates based on?
Answers (1)
Cash flows from investing activities, as part of the statement of cash flows, would include any payments for the purchase of treasury stock. a. true. b. false.
Answers (1)
You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend. What would your rate of return be if you sell the stock at $45 per share
Answers (1)
Crane Company incurs these expenditures in purchasing a truck: cash price $22,280, accident insurance (during use) $1,940, sales taxes $1,730, motor vehicle license $250, and painting and lettering $2,350. What is the cost of the truck?
Answers (1)
Eldrick bought a certificate that allows him to apply for a tax deed after a certain period. what did eldrick purchase?
Answers (1)
New Questions in Business
Douglas County sought bids for a construction project. Robert Taggart wanted to submit a bid but knew the project needed rock.
Answers (1)
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 94,000 units, 80% complete as to materials and 25% complete as to conversion.
Answers (1)
Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors, and has already announced the stock repurchase plan.
Answers (1)
Mr. Curtis paid the following taxes: Federal income tax $ 66,750 Federal gift tax 334 Federal employer payroll tax for housekeeper 1,202 Indiana income tax 7,500 Indiana sales tax on consumer goods and services 2,670 Local property tax on: Principal
Answers (1)
Johnson Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $50,000 for 5 years.
Answers (1)