Question

Portfolio Beta Question - Please see the attachment

Answer 1

Current portfolio can be divided into 2 parts: 100 000 considered for sale and 300 000 remaining portfolio after the transactions. The weigths are 25% and 75% of current portfolio.
If the beta is currently 1.5 and 1.8 after transaction, we can compute as follows:
1.8 * 0.75 = 1.35
1.5 - 1.35 = 0.15
0.15 / 0.25 = 0.6
The beta of the stock Thomas is considering selling is 0.6

Answer 2

Hey joooonas, the final answer is supposed to be 1.2. There must be something wrong somewhere in your steps