You have $150,000 invested in three stocks as follows: Stock Investment Stock's Beta SYK $50,000 1.9 ISRG $50,000 1.2 YUM $50,000 (a) What is the beta value of your portfolio? (b) You desire a portfolio of 1.15 and will achieve this by selling $25,000 of ISRG and an additional amount SYK, with the proceeds of both sales to purchase YUM. What dollar amount of SYK should you sell? What dollar amount of YUM will you purchase? 0.9

You have $150,000 invested in three stocks as follows: Stock Investment Stock's Beta SYK $50,000 1.9 ISRG $50,000 1.2 YUM $50,000 (a) What is the beta value of your portfolio? (b) You desire a portfolio of 1.15 and will achieve this by selling $25,000 of ISRG and an additional amount SYK, with the proceeds of both sales to purchase YUM. What dollar amount of SYK should you sell? What dollar amount of YUM will you purchase? 0.9

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 11P

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