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(b) John has a six-stock portfolio that has a market value equal to $500,000. The portfolio's beta is 1.2. John is considering selling a particular

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(b) John has a six-stock portfolio that has a market value equal to $500,000. The portfolio's beta is 1.2. John is considering selling a particular stock from his portfolio to help pay some expenses. The stock is valued at $150,000, and if he sells it, the portfolio's beta will increase to 1.4. (i) What is the beta of the stock John is considering selling? (ii) Explain the implications of your results for John's decision to sell a particular stock. (Marks 1 + 2 = 3)

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