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You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a

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You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b=0.90 and use the proceeds to buy a new stock with b=1.25. What will the portfolio's new beta be? Do not round your intermediate calculations. a. 1.138 b. 0.853 c. 1.285 d. 0.956 e. 1.103

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