Determine what would the portfolio new beta be

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Reference no: EM13327961

Suppose you held a diversified portfolio consisting of a $7500 investment in each of 20 different common stocks. The portfolio beta is 1.12. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7500 and use the proceeds to buy another stoc with beta of 1.75. What would your portfolio new beta be?

Reference no: EM13327961

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