The portfolios beta is to 0.75. now suppose you decided to, Ask an Expert

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Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is to 0.75. Now, suppose you decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7,500 and to use these proceeds to buy another stock for your portfolio. Assume the new stock's beta is equal to 1.85. find out your portfolio's new beta.

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Basic Finance, Finance

Category:- Basic Finance
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