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As an investor, you are considering investing in the Locke Corporation (LC). According to your estimation there is a 75% probability that the return will be 17%, a 15% probability that the return will be 20%, and a 10% probability that the return will be 8%. You have also estimated LC's beta as 1.7.The market required rate of return is 15% and the risk free rate is 9%.
-Your portfolio has a value of $1,800,000 with a beta of 1. Then, you buy$200,000 of the LC stock without selling any existing stock. What is the new beta of your portfolio?

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The Answer of Use the following information to answer the question below.
As an investor, you are considering investing in the Locke Corporation (LC). According to your estimation there is a 75% probability that the return will be 17%, a 15% probability that the return will be 20%, and a 10% probability that the return will be 8%. You have also estimated LC's beta as 1.7.The market required rate of return is 15% and the risk free rate is 9%.
-Your portfolio has a value of $1,800,000 with a beta of 1. Then, you buy$200,000 of the LC stock without selling any existing stock. What is the new beta of your portfolio?

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