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B. Tom Noel holds the following portfolio: Tom plans to sell Stock A and replace it with Stock E, which has a beta of 0.80.

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B. Tom Noel holds the following portfolio: Tom plans to sell Stock A and replace it with Stock E, which has a beta of 0.80. I. By how much will the portfolio beta change? Do not round your intermediate calculations (3 Marks) II. Compute Portfolio returns before and after replacement (6 Marks)

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