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

Answer rating: 100% (QA)

e 123 Explanation Investment in Old 9... View the full answer