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a 4. Terry invested equal amounts in five stocks to form an investment portfolio, which has a beta equal to 1.2. Terry is considering selling
a 4. Terry invested equal amounts in five stocks to form an investment portfolio, which has a beta equal to 1.2. Terry is considering selling the riskiest stock in the portfolio which has a beta of 2.0 and replacing it with another stock which has a beta of 1.0. Assuming equal amounts are invested in each stock in the portfolio, what is the new beta of the investment portfolio
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