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A portfolio contains 8 stocks. The portfolio beta is 1.4. Stock A compromises 21% of the wealth of the portfolio and stock B compromises 29%
A portfolio contains 8 stocks. The portfolio beta is 1.4. Stock A compromises 21% of the wealth of the portfolio and stock B compromises 29% of the wealth of the portfolio. Stock A has a beta of 0.9 and stock B has a beta of -1.1. If you sell all of your investment in A and B and invest the proceeds in the risk-free asset, your new portfolio beta will be: (Note: please retain at least 4 decimals in your calculations and at least 2 decimals in your final answer.)
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