Initially a portfolio contains 40 invested in colgate 40, Ask an Expert

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Initially, a portfolio contains 40% invested in Colgate, 40% invested in Apple, and the remainder in Amazon. You calculated the following information: Covariance(Colgate,Market) = 6 Covariance(Apple, Market) = 12 Covariance(Amazon,Market)= 13 Variance(Market)= 10 Suppose you modify the portfolio today so that 20% is invested in the risk-free asset and the remainder is invested in the market. What will be the change in this portfolio's market beta? (Change = New portfolio beta - Old Portfolio beta) Your answer should be exact.

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Financial Management, Finance

Category:- Financial Management
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