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Suppose you hold a diversified portfolio consisting of $10,000 invested equally in each of 10 different common stocks. The portfolio's beta is 1.4. Now suppose
Suppose you hold a diversified portfolio consisting of $10,000 invested equally in each of 10 different common stocks. The portfolio's beta is 1.4. Now suppose you decided to sell one of your stocks that has a beta of 0.9 FOR 10000.and to use the proceeds to buy another stock with a beta of 1.6.What would the portfolio's new beta be?
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