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You have a $100,000 portfolio with a beta of 1.7. If you add $40,000 of a stock to the portfolio with a beta of 0.7,

You have a $100,000 portfolio with a beta of 1.7. If you add $40,000 of a stock to the portfolio with a beta of 0.7, what will be the beta of the new portfolio?

  • A. 1.98

  • B. 1.41

  • C. 1.20

  • D. 1.90

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