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Calculate the Revised Portfolio beta riskiest beta replaced by risky fewer betas

An investor, who believes the economy is slowing down, wishes to reduce the risk of her portfolio. She currently owns 5 securities, each with a market value of $4,000. The current beta of the portfolio is 1.25 and the beta of the riskiest security is 1.8. What will the portfolio beta be if the riskiest security is replaced with a security of equal market value but a beta of 1.2?

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Category:- Basic Finance
Reference No.:- M9166928

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