A Portfolio Manager (PM) has the following four stocks in his portfolio: Security No. of Shares...
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A Portfolio Manager (PM) has the following four stocks in his portfolio: Security No. of Shares Market Price per share (*) VSL CSL SML APL Compute the following: (i) Portfolio beta. 10,000 5,000 8,000 2,000 50 20 25 200 В 0.9 1.0 1.5 1.2 (ii) If the PM seeks to reduce the beta to 0.8, how much risk free investment should he bring in? (iii) If the PM seeks to increase the beta to 1.2, how much risk free investment should he bring in? A Portfolio Manager (PM) has the following four stocks in his portfolio: Security No. of Shares Market Price per share (*) VSL CSL SML APL Compute the following: (i) Portfolio beta. 10,000 5,000 8,000 2,000 50 20 25 200 В 0.9 1.0 1.5 1.2 (ii) If the PM seeks to reduce the beta to 0.8, how much risk free investment should he bring in? (iii) If the PM seeks to increase the beta to 1.2, how much risk free investment should he bring in?
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Security VSL SML APL i Portfolio Beta EWeight Beta 1108 If PM seeks ... View the full answer
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