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Determine the beta of the new portfolio

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Reference no: EM132633296

Problem 1: An investor holds a diversified portfolio with a beta equal to 1.5, consisting of a P100 investment in each of 10 different common stocks. He sold one of your stocks that has a beta equal to 0.5 for P100. The whole proceeds were used to purchase another stock that has a beta equal to 1. Determine the beta of the new portfolio?

Reference no: EM132633296

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