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You hold a diversified $200,000 portfolio consisting of 20 stocks with $10,000 invested in each. The portfolio's beta is 1.12. You plan to sell a

You hold a diversified $200,000 portfolio consisting of 20 stocks with $10,000 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 = 1.75. What will the portfolio's new beta be?

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