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Determining the portfolio new beta

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An investor holds a diversified $100,000 portfolio consisting of 10 stocks with $10,000 invested in each. The portfolio's beta is 1.12. The investor plans to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80. What will the portfolio's new beta be?

Reference no: EM132638255

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