What would your portfolios new beta be

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Reference no: EM131057646

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.94. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and to use these proceeds to buy another stock with a beta of 2.26. What would your portfolio's new beta be? Round your answer to two decimal places.

Reference no: EM131057646

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