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Suppose you hold a diversified portfolio consisting of a $10,651 invested equally in each of 5 different common stocks. The portfolio's beta is 1.33. Now

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Suppose you hold a diversified portfolio consisting of a $10,651 invested equally in each of 5 different common stocks. The portfolio's beta is 1.33. Now suppose you decided to sell one of your stocks that has a beta of 1 and to use the proceeds to buy a replacement stock with a beta of 1.9. What would the portfolio's new beta be? 1.61 1.71 1.91 1.81 1.51

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