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Portfolio''s new beta be after these transactions

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You have a $1 million portfolio consisting of a $200,000 investment in each of 5 different stocks. The portfolio has a beta of 2.0. You are considering selling $200,000 worth of one stock with a beta of 1.5 and using the proceeds to purchase another stock with a beta of -2. What will the portfolio's new beta be after these transactions?

Reference no: EM131189939

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