You have a portfolio with a beta of 1.30. What will be the new portfolio beta if you keep 84 percent of your money in the old portfolio and 16 percent in a stock with a beta of 1.07? (Do not round intermediate calculation and round your answer to 2 decimal places.) New portfolio beta %

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 15MC
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You have a portfolio with a beta of 1.30. What will be the new portfolio beta if you keep 84 percent of your money in the old portfolio
and 16 percent in a stock with a beta of 1.07? (Do not round intermediate calculation and round your answer to 2 decimal places.)
New portfolio beta
Transcribed Image Text:You have a portfolio with a beta of 1.30. What will be the new portfolio beta if you keep 84 percent of your money in the old portfolio and 16 percent in a stock with a beta of 1.07? (Do not round intermediate calculation and round your answer to 2 decimal places.) New portfolio beta
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