Suppose you hold a portfolio consisting of a $50,000 investment in each of 8 different common stocks. The portfolio’s beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. What would the portfolio’s new beta be? 1.17 1.23 1.29 1.32 1.43

Correct Answer is 1.32

Explanation:

Increase in beta as a result of net sales=(1.55-1)=0.55

Hence increase/stock=0.55/8

=0.06875

Hence, New beta=1.25+0.06875

=1.32(Approx).

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;