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Randy Marsh holds the following portfolio:

            Stock              Investment           Beta

              A                  $150,000            1.40

              B                    50,000            0.80

              C                   100,000            1.00

              D                   75,000            1.20

            Total                 375,000

Randy decides to sell half of his investment in Stock C, and use the proceeds to purchase the proceeds towards buying more of stock B. Assume there are no commission expenses for these trades.

After these two trades, what is Randy's portfolio beta?  (Round middle steps to at least 4 decimal places)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93054929

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