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Question
You are managing a portfolio of 10 stocks which are held in equal amounts. The current beta of the portfolio is 1.64, and the beta of Stock A is 2.0. If Stock A is sold, what would the beta of the replacement stock have to be to produce a new portfolio beta of 1.55?
a. 1.10
b. 1.00
c. 0.90
d. 0.75
e. 0.50
Answer
This answer is hidden. It contains 161 characters.
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