The analyst holds portfolio with market value

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Albert the Analyst holds a portfolio with a market value of $900,000 (consisting of a $100,000 investment in each of nine different common stocks). If the portfolio's beta is currently 1.30 and Albert decides to sell one of his stocks that has a beta of 0.90 and to use the proceeds to buy a replacement stock with a beta of 1.50. What would the portfolio's new beta be?

Select one: a. 1.12 b. 1.24 c. 1.29 d. 1.37

Reference no: EM131185260

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