Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different...
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Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.32. Now suppose you decided to sell one of your stocks that has a beta of 0.85 and to use the proceeds to buy a replacement stock with a beta of 1.30. What would the portfolio's new beta be? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a 1.59 b. 1.55 O 1.38 O d. 1.32 O e. 1.77
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