A stock portfolio's overall beta is found by multiplying each stock's beta times the percentage of the overall portfolio it makes up and adding these terms together. Since the current portfolio's beta is known, we can treat all the stocks in the portfolio as a single stock for calculating its weight in the new portfolio. Thus, our new portfolio will have a value of $150,000, $100,000, or 2/3, of which has a beta of 1.5 and $50,000, or 1/3, of which has a beta of 3. Then the beta of the new portfolio will be 1.5*(2/3) + 3*(1/3) = 2.
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Sorry i dont know but need the points
Step-by-step explanation:
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you do a line that goes through b but doesn't go through the circle
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Step-by-step explanation:
x = 2 is the equation of a vertical line passing through x = 2. This is shown in the lower left graph: a solid vertical line 2 units to the right of the y-axis.
