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Sharon's portfolio, which is valued at $200,000, contains six stocks and has a beta coefficient equal to 1.5. Later today, Sharon is going to sell
Sharon's portfolio, which is valued at $200,000, contains six stocks and has a beta coefficient equal to 1.5. Later today, Sharon is going to sell one of the stocks in her portfolio for $50,000. After the sale, the portfolio's beta will be 1.4. According to the CAPM, what is the beta coefficient of the stock that Sharon plans to sell? 1) 1.8 2) 2.0 3) 2.3 4) 2.5 5) 2.7
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