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Suppose you hold a diversified portfolio consisting of a $8,950 invested equally in each of 20 different common stocks. The portfolios beta is 1.42. Now
| Suppose you hold a diversified portfolio consisting of a $8,950 invested equally |
| in each of 20 different common stocks. The portfolios beta is 1.42. Now |
| suppose you decided to sell one of your stocks that has a beta of 1.4 and to |
| use the proceeds to buy a replacement stock with a beta of 1.3. What would |
| the portfolios new beta be? |
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
