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You hold a diversified portfolio consisting of a $8,811 invested in each of 5 different common stocks . The portfolio beta is equal to 0.73
You hold a diversified portfolio consisting of a $8,811 invested in each of 5 different common stocks . The portfolio beta is equal to 0.73 . You have decided to sell one of your stocks that has a beta equal to 0.7 for $ 8,811. You plan to use the proceeds to purchase another stock that has a beta equal to 1.7. What will be the beta of the new portfolio?
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