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You sell some of your Exxon common stock (which tends to earn the same return every year) and replace it with the common stock of
You sell some of your Exxon common stock (which tends to earn the same return every year) and replace it with the common stock of GoldCorp, Inc. (whose shares tend to rise sharply when the economy grows and fall dramatically when the economy is in recession). How should your portfolio beta react to this change?(Select the best choice below.)
A. It will definitely exceed the beta of the market when all is said and done
B. By increasing
C. It will either increase or decrease
D. It remains unchanged
E. By decreasing
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