You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions? Show your work.
Prepare this Assignment by responding to the problems as an Excel® or Microsoft® Word®, showing all necessary formulas and steps. List each question, followed by your answer.
The Module 2 Competency Assessment has 3 parts.
Part 1 Prepare balance sheet analysis using financial data
Calculate corporate tax liabilities.
Calculate liabilities and equity.
Part 2 Analyze Portfolio Beta
Calculate stock beta
Part 3 Calculate corporate tax liabilities
Calculate yield to maturity for annual payments.
Analyze portfolio beta
See attached rubric checklist for mastery
