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You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (i.e., your total investment is $200,000). The portfolio
You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (i.e., your total investment is $200,000). The portfolio beta is equal to 1.2 . You have decided to add another stock with a beta equal to 2.0 for $50,000. What will be the beta of the new portfolio? (Round to two digit decimal places)
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