You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock that has a beta equal to .9 and using the proceeds to purchase another stock that has a beta equal to 1.4. What will be the new beta of your portfolio following this transaction?
Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.