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Suppose you hold a portfolio consisting of a RM10,000 investment in each of 8 different common stocks. The portfolios beta is 1. 25 . Now

Suppose you hold a portfolio consisting of a RM10,000 investment in each of 8 different common stocks. The portfolios beta is 1.25. Now suppose 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 portfolios new beta be?

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