Suppose your retirement fund consists of a $7,500 investment in each of 20 (twenty) different common stocks. The portfolio's beta is 1.35. Now, suppose you sell 1 (one) of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.85. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Suppose your retirement fund consists of a $7,500 investment in each of 20 (twenty) different common stocks. The portfolio's beta is 1.35. Now, suppose you sell 1 (one) of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.85. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Related questions
Suppose you manage a $4.39 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | |
| A | $400,000 | 1.50 | |
| B | 750,000 | -0.50 | |
| C | 940,000 | 1.25 | |
| D | 2,300,000 | 0.75 | |
If the market's required rate of return is 13% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
Suppose you are the money manager of a $4.33 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 460,000 | 1.50 |
| B | 760,000 | - 0.50 |
| C | 1,060,000 | 1.25 |
| D | 2,050,000 | 0.75 |
If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
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