What is the new beta of the portfolio

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You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. The portfolio beta is equal to 0.87. You have decided to sell a coal mining stock (b = 1.00) at $5,000 net and use the proceeds to buy a like amount of a mineral rights company stock (b = 2.11). What is the new beta of the portfolio?

Reference no: EM13947014

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