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An investor's portfolio has a beta of 0.94 and consists of the following 3 stocks (A,B,C), with their respective beta and % weight shown in

An investor's portfolio has a beta of 0.94 and consists of the following 3 stocks (A,B,C), with their respective beta and % weight shown in the table below:

A B C
Beta 0.7 0.9 1.3
Weight 40% 30% 30%

If the investor wants to swap out Stock A and reinvest the money into another stock that will raise the portfolio's beta to 1.05, the new stock should have a beta of _________.

0.850

0.975

1.225

1.015

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