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Suppose you held a diversified portfolio consisting of a $7, 500 investment in each of 20 different common stocks.

The portfolio's beta is 0.77. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7, 500 and use the proceeds to buy another stock with a beta of 1.23.

What would your portfolio's new beta be? Do not round intermediate calculations. ___________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92846194

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