You hold four stocks in your portfolio a b c and d. the, Ask an Expert

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You hold four stocks in your portfolio: A, B, C, and D. The portfolio has a beta of 1.20. Stock C comprises 40 percent of your portfolio and has a beta of 1.60. If you sell all of your holdings in Stock C and replace it with Stock E with a beta of 1.25, what is the new beta of your portfolio?

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