Suppose you hold a diversified portfolio worth $800,000 with 20 stocks. The beta of the...
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Suppose you hold a diversified portfolio worth $800,000 with 20 stocks. The beta of the portfolio is 1.2. Now you sold stock A worth $40,000 whose beta is 0.8, and bought stock Z worth $80,000 whose beta is 1.6. What is the beta of the new portfolio?
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