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You are managing a portfolio of 10 stocks which are held in equal dollar amounts. The current beta of the portfolio is 1.55, and the
You are managing a portfolio of 10 stocks which are held in equal dollar amounts. The current beta of the portfolio is 1.55, and the beta of stock a is 2.0. If stock A is sold and the proceeds are used to purchase a replacement stock, what does the beta of the replacement stick have to be to change the portfolio beta to 1.7? A. 4.4 B. 5.3 C. 3.2 D. 3.5 E. 4.1
You are managing a portfolio of 10 stocks which are held in equal dollar amounts. The current beta of the portfolio is 1.55, and the beta of stock a is 2.0. If stock A is sold and the proceeds are used to purchase a replacement stock, what does the beta of the replacement stick have to be to change the portfolio beta to 1.7?
A. 4.4
B. 5.3
C. 3.2
D. 3.5
E. 4.1
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