Tom Noel holds the following portfolio:

Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.75.By how much will the portfolio beta change?
A)−0.190
B)−0.211
C)−0.234
D)−0.260
E)−0.286

Question

Tom Noel holds the following portfolio:
​
 Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.75.By how much will the portfolio beta change?
A)−0.190 
B)−0.211 
C)−0.234 
D)−0.260 
E)−0.286

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 0.75.By how much will the portfolio beta change?
A)−0.190 
B)−0.211 
C)−0.234 
D)−0.260 
E)−0.286

Tom Noel Holds the Following Portfolio