You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio’s beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80. What will the portfolio’s new beta be?,,a. 1.286,b. 1.255,c. 1.224,d. 1.194,e. 1.165,
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