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Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.05. Suppose you sell one of
Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.05. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.65. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
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