Ivan Knobel holds a well-diversified portfolio that has an expected return of 11.0%, a total value of
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Question:
Ivan Knobel holds a well-diversified portfolio that has an expected return of 11.0%, a total value of $90,000, and a beta of 1.20. He is in the process of buying 1,000 shares of Syngine Corp at $10 a share and adding it to his portfolio. Syngine has an expected return of 13.0% and a beta 1.50. What will the beta on the portfolio be after the purchase of the Syngine stock?
a. 1.17
b. 1.29
c. 1.36
d. 1.42
e. 1.23
Related Book For
Essentials of Business Statistics Communicating With Numbers
ISBN: 978-0078020544
1st edition
Authors: Sanjiv Jaggia, Alison Kelly
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