What will portfolios new beta be after these transactions

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Reference no: EM13885428

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.25. You are considering selling $100,000 worth of one stock with a beta of 1.1 and using the proceeds to purchase another stock with a beta of 1.5. What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM13885428

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