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Business, 20.09.2021 05:20 babysune01

Suppose you have a diversified portfolio consisting of $10,000 investment in each of 10 different stocks. The portfolio’s beta is 1.12. You are considering selling $10,000 worth of one stock with a beta of 1.0 and using the proceeds to buy another stock with a beta of 1.14. What is the new beta of portfolio after these transactions?

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