Tom Noel holds the following portfolio: Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.80.By how much will the portfolio beta change? Do not round your intermediate calculations.
A) -0.240
B) -0.194
C) -0.290
D) -0.271
E) -0.230

Question

Tom Noel holds the following portfolio:  Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.80.By how much will the portfolio beta change? Do not round your intermediate calculations.
A) -0.240 
B) -0.194 
C) -0.290 
D) -0.271 
E) -0.230

Quizplus · Accepted Answer

The Answer of Tom Noel holds the following portfolio:  Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.80.By how much will the portfolio beta change? Do not round your intermediate calculations.
A) -0.240 
B) -0.194 
C) -0.290 
D) -0.271 
E) -0.230

Tom Noel Holds the Following Portfolio: Tom Plans to Sell