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What will be the beta of the new portfolio

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Reference no: EM132840114

Question - You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (i.e., your total investment is $200,000). The portfolio beta is equal to 1.2. You have decided to add another stock with a beta equal to 1.9 for $50,000. What will be the beta of the new portfolio?

Reference no: EM132840114

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