What will be the beta of the new portfolio

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You hold a diversified portfolio of a $10,000 investment in each of the different common stocks (I.e, your total investment is$150,000). The portfolio beta is equal to 1.0, you have decided to sell one of your stocks which has a beta equal to 1.8 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 0.7. What will be the beta of the new portfolio? Show your answer to 2 decimal places

Reference no: EM13807407

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