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Question: You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.05. You have decided to sell a gold mining stock (b = 1.25) at $5,000 net and use the proceeds to buy a like amount of a coal company stock (b = 1.90). What is the new beta of the portfolio?

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Category:- Basic Finance
Reference No.:- M92819853

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