You hold four stocks (a, b, c, and d) in your portfolio. the portfolio beta is 1.20. stock c constitutes 40 percent of the dollar value of your holdings and has a beta of 1.60. if you sell all of your holdings in stock c, and replace them with an equal investment in stock e (which has a beta of 1.25), your new portfolio beta will be: a) 1.00.b) 1.06.c) 1.12.d) 1.25.e) 1.32.

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?