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Suppose you held a diversified portfolio consisting of $5,000 investment in each of 10 different common stocks. The portfolios beta is 1.15. Now suppose that

Suppose you held a diversified portfolio consisting of $5,000 investment in each of 10 different common stocks. The portfolios beta is 1.15. Now suppose that you decided to sell one of the stocks in your portfolio with a beta equals to 1.0 for $5,000 and use the proceeds to buy another stock with a beta of 0.85. What would your portfolios new beta be?

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