Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875. If

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Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.


Jill Angel holds a $200,000 portfolio consisting of the followin


If Jill replaces Stock A with another stock, E, which has a beta of 1.85, what will the portfolio's new beta be?
A. 0.92
B. 1.21
C. 1.3
D. 1.14
E.1.35

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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