Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.85. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 0.95. Calculate your portfolio's new beta.© BrainMass Inc. brainmass.com October 2, 2020, 2:46 am ad1c9bdddf
This solution helps calculate beta.