Portfolio new beta after transactions


You have the $2 million portfolio consisting of $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4 what will be the portfolio's new beta after these transactions?

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Finance Basics: Portfolio new beta after transactions
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