The beta of the portfolio is the weighted average of the individual asset betas where
the weights are the portfolio weights.
To get portfolio beta we will replace 1 stock of 20 or 5% of the portfolio.
The other
stocks are 95% of the portfolio.
1.12 =0.95 ( b )+0.05*1
b= 1.126316
So not when we replace one and get other stock
Portfolio beta =0.95*1.126316 + 0.05*1.75=1.1575
Answer:
A, Yes
Step-by-step explanation:
Your first answer is A because Multiply /divide both sides by the same non zero constant . Second, answer is Yes .
Hope this helps;)
Pls mark brainlist
Answer:
-78.424
Step-by-step explanation:
