Suppose that your existing portfolio has a beta of 1.3 and a value of $100,000.

Existing Portfolio Beta	1.3
Existing Portfolio Value	$100,000

A) Suppose that you sell $10,000 of the existing portfolio to buy a stock with a beta of 1.7. What is the portfolio beta?

The portfolio beta is . Round your answer to the nearest two decimal places.

B) Suppose that you convert 20% of the existing portfolio to a low-risk portfolio that has a beta of 0.7. What is the portfolio beta?

The portfolio beta is .Round your answer to the nearest two decimal places.

C) Suppose that you have an additional $15,000 in cash and buy a stock with a beta of 1.1 to add to the existing portfolio. 

What is the portfolio beta?

The portfolio beta is . Round your answers to the nearest two decimal places.

Answer rating: 100% (QA)

A To calculate the new portfolio beta after buying a stock with a beta of 17 we can use the formula ... View the full answer