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You have a portfolio with a beta of 1.18. What will be the new portfolio beta...

You have a portfolio with a beta of 1.18. What will be the new portfolio beta if you keep 87 percent of your money in the old portfolio and 13 percent in a stock with a beta of 0.59? (Round your answer to 2 decimal places.)

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Answer #1

Portfolio beta=Respective beta*Respective investment weight

=(0.87*1.18)+(0.13*0.59)

which is equal to

=1.10(Approx).

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