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Lelu [443]
1 year ago
7

portfolio beta you have a portfolio with a beta of 2.44. what will be the new portfolio beta if you keep 10 percent of your mone

y in the old portfolio and 90 percent in a stock with a beta of 2.69? multiple choice 2.67 2.56 1.00 5.13
Business
1 answer:
slamgirl [31]1 year ago
7 0

If you keep 10% of your cash in the previous portfolio and invest 90% in a stock with such a beta of 2.69, the new portfolio's beta will be 2.67.

<h3>Portfolio beta – what is?</h3>

According to the selected stocks betas of the securities that make up a portfolio, portfolio beta describes the relative volatility of a portfolio of individual securities when viewed as a whole.

<h3>What makes a portfolio beta good?</h3>

A gauge for a currency's risk level or volatility in relation to the whole market is its beta value. Therefore, a suitable beta will depend on your objectives and risk tolerance. A beta of 1.0 would've been perfect if you wanted to imitate the larger market within your portfolio, perhaps through an index ETF.

<h3>Briefing:</h3>

New portfolio beta = (0.10 × 2.44) + (0.90× 2.69)

= (0.244 + 2.421)

= 2.67

To know more about portfolio beta visit:

brainly.com/question/15683560

#SPJ4

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