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Mathematics, 05.02.2020 12:53 itsdeevv

Suppose you hold a diversified portfolio consisting of a $7500 investment in each of 20 different common stocks. the portfolio's beta is 1.12. now, suppose you sell one of the stocks with a beta of 1.0 for $7500 and use the proceeds to buy another stock whose beta is 1.75. calculate your portfolio's new beta.

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