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Suppose you hold a diversified portfolio consisting of a $ 1 0 , 0 0 0 investment in each of 1 2 different common stocks.
Suppose you hold a diversified portfolio consisting of a $ investment in each of different common stocks. The portfolio's beta is Now suppose you decided to sell one of your stocks that has a beta of and to use the proceeds to buy a replacement stock with a beta of What would the portfolio's new beta be
Suppose you hold a diversified portfolio consisting of a $ investment in each of different common stocks. The portfolio's beta is Now suppose you decided to sell one of your stocks that has a beta of and to use the proceeds to buy a replacement stock with a beta of What would the portfolio's new beta be
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