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suppose you hold a diversified portfolio consisting of a $7500 investment in each of 10 different common stocks. the portfolio beta is equal to 1.05.
suppose you hold a diversified portfolio consisting of a $7500 investment in each of 10 different common stocks. the portfolio beta is equal to 1.05. now, suppose, you have decided to sell one of the stocks with a beta of 1.0 for $7500 and use the proceeds to buy a stock with a beta of 3.5 . calculate your portfolios new beta
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