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Finance 18 Online
OpenStudy (anonymous):

Susan's investment portfolio currently contains three stocks that have a total value equal to $100,000. The beta of this portfolio is 1.5. Susan is considering investing an additional $50,000 in a stock that has a beta equal to 3. After she adds this stock, what will be the portfolio's new beta?

OpenStudy (danielle):

first you need to compute the weights of your 4 stocks in the portfolio then you need to use the equation: Beta of the portfolio is weight of stock A*Beta A +....+weight of new stock*beta of new stock

OpenStudy (anonymous):

Susan's investment portfolio currently contains three stocks that have a total value equal to $100,000. The beta of this portfolio is 1.5. Susan is considering investing an additional $50,000 in a stock that has a beta equal to 3. After she adds this stock, what will be the portfolio's new beta?

OpenStudy (anonymous):

it could be

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