Kristina Raattama holds a $200,000 portfolio consisting of the following Stocks. The portfolio's beta is 0.875.

If Kristina replaces Stock A with another stock, $ E $, which has a beta of 1.50, what will the portfolio's new beta be?
A) $ 1.07 $
B) $ 1.13 $
C) $ 1.18 $
D) $ 1.24 $
E) $ 1.30 $

Question

Kristina Raattama holds a $200,000 portfolio consisting of the following Stocks. The portfolio's beta is 0.875.

If Kristina replaces Stock A with another stock, $ E $, which has a beta of 1.50, what will the portfolio's new beta be?
A) $ 1.07 $ 
B) $ 1.13 $ 
C) $ 1.18 $ 
D) $ 1.24 $ 
E) $ 1.30 $

Quizplus · Accepted Answer

The Answer of Kristina Raattama holds a $200,000 portfolio consisting of the following Stocks. The portfolio's beta is 0.875.

If Kristina replaces Stock A with another stock, $ E $, which has a beta of 1.50, what will the portfolio's new beta be?
A) $ 1.07 $ 
B) $ 1.13 $ 
C) $ 1.18 $ 
D) $ 1.24 $ 
E) $ 1.30 $

Kristina Raattama Holds a $200,000 Portfolio Consisting of the Following E E E

Kristina Raattama Holds a $200,000 Portfolio Consisting of the Following $E$