If the company sells all zibracom stock and invests the


Elephant Company has the following stocks:

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a. What is the portfolio beta?

b. If the company sells all zibra.com stock and invests the total in the new stock called Chitta.com, which has a beta of 1.35, what will be the new portfolio beta?

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Finance Basics: If the company sells all zibracom stock and invests the
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