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Suppose you hold a diversified portfolio consisting of a $12,356 invested equally in each of 10 different common stocks. The portfolios beta is 1.39. Now
| Suppose you hold a diversified portfolio consisting of a $12,356 invested equally |
| in each of 10 different common stocks. The portfolios beta is 1.39. 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. What would |
| the portfolios new beta be? |
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
