Probleman investor has a 10 security portfolio with a beta, Ask an Expert

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Problem:

An investor has a 10 security portfolio with a beta of 1.5, each with a market value of $5,000.

Required:

Question: If the investor wants to reduce the overall beta to 1.4 by eliminating a risk security with a beta of 1.7, what would be the beta of the replacement security?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174486

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