Use the proceeds to buy a new stock with beta

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You hold a diversified $100,000 portfolio consisting of 10 stocks with $10,000 invested in each. The portfolio's beta is 1.10. You plan to sell a stock with beta = 0.70 and use the proceeds to buy a new stock with beta = 1.40. What will the portfolio's new beta be?

Reference no: EM131065072

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