Following is the portfolio held by Kamil:

Stock Investment
XT RM 40,000
XU 50,000
XV 70,000
XW 65,000

The beta value for Stock XT is 0.70, Stock XU is 0.64, Stock XV is 1.40 and Stock XW is 1.000. Suzi plans to sell XT Stock and replace it with XX Stock, which has a beta of 1.70. Calculate the changes in beta portfolio? Please round your answer to 3 decimal places

Answer rating: 100% (QA)

Lets calculate the changes in the beta of the portfolio when XT Stock is replaced by XX Stock Given ... View the full answer