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Question
Paul McLaren holds the following portfolio:
Stock Investment Beta
A $150,000 1.40
B 50,000 0.80
C 100,000 1.00
D 75,000 1.20
Total $375,000
Paul plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change?
a. -0.190
b. -0.211
c. -0.234
d. -0.260
e. -0.286
Answer
This answer is hidden. It contains 1 characters.
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