Suppose you hold a portfolio consisting of a $50,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. What would the portfolio's new beta be? 1.17 1.23 1.29 1.32 1.43
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Home » Business » Suppose you hold a portfolio consisting of a $50,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.