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A Portfolio of Three Stocks with Total Market Value of $1,000,000

question 112

Essay

A portfolio of three stocks with total market value of $1,000,000 currently has a beta of 1.4.In light of an expected market downturn,you wish to reduce the portfolio beta to no more than 1.0.Two stocks are likely candidates for sale,one with a beta of 1.8 and a market value of $200,000 and the other with a beta of 1.5 and a market value of $250,000.Assuming that you could find one appropriate stock to replace these two,what should be its beta?


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The act of looking directly into another person's eyes, often used as a means of communication.

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The act or process of starting sexual activities or behaviors with another person.

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The exchange of information or ideas through verbal, written, or nonverbal means.

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