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Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks (portfolio total $80,000). The portfolio beta is 1.25.

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks (portfolio total $80,000). The portfolio beta is 1.25. Now you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.35. What would the portfolio's new beta be?
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calculatioes. is 1.29 1 is 160

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