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Problem 6-9 Portfolio Beta Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.85. Now,

Problem 6-9 Portfolio Beta

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.85. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.25. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.

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