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You manage your own portfolio of about twenty stocks. One of which is Honda Motors. The returns on Honda tend to move up and down
You manage your own portfolio of about twenty stocks. One of which is Honda Motors. The returns on Honda tend to move up and down with the economy as a whole. You decide to sell Honda and replace it with the common stock of Repominus?Man Inc., an asset recovery company.Repominus? Man's shares tend to rise when the economy falls, and vice versa. Your portfolio's beta should
A decrease
B increase
C Either Increase or Decrease
D Remain unchanged
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