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Posted on Jul 31, 2024

you own a portfolio that has a total value of $ 1 2 0 , 0 0 0 and a beta of 1 . 2

you own a portfolio that has a total value of $

120, 000

and a beta of

1.26 .

You have another $

43, 000

to invest and you would like the beta of your portfolio to decrease to

1.19 .

What does the beta of the new investment have to be in order to accomplish this?

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