What is the beta of the new portfolio

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Question - Suppose you hold a diversified portfolio worth $500,000 with 20 stocks. The beta of the portfolio is 1.4. Now you sold stock A worth $50,000 whose beta is 0.9, and bought stock Z worth $70,000 whose beta is 1.7. What is the beta of the new portfolio?

Reference no: EM132937920

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