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Determining the new beta of the portfolio

Question:

You have a 2 million portfolio consisting of a 100,000 investment in each of 20 different stocks. The portfolio has a beta equal to 1.1. You are considering selling $100,000 worth of one stock which has a beta equal to 0.9 and using he process to purchase another stock which has a beta equal to 1.4. What will be the new beta of your portfolio following the transaction?

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Finance Basics: Determining the new beta of the portfolio

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Finance Basics: Determining the new beta of the portfolio

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