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Problem:

You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70?

Note: Please show how you came up with the solution.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91172802

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