document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1107727>Question 1107727</A>: <I><SPAN STYLE=\"word-break: break-all;\"> suppose you hold a deiversified portfolio consisting of a $7500 investment in each of 20 different common stock.The portfolio beta is equal to 1.12.Now,supose you have decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7500 and to use these proceeds to buy another stock for your portfoilo.Assume the new stocks beta is equal to 1.75.calculate your portfolio is new beta </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #722824 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=722824\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 20(1.12) = 22.4<BR>\n" );
document.write( "22.4 - 1 = 21.4<BR>\n" );
document.write( "21.4 + 1.75 = 23.15<BR>\n" );
document.write( "23.15/20 = 1.1575 or 1.6 </SPAN>\n" );
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