Suppose you hold a diversified portfolio consisting of a $ 7,500 investment in each of 20 different

Question:

Suppose you hold a diversified consisting of a $ 7,500 investment in each of 20 different common stocks. The portfolio’s beta is 1.12. Now, suppose you sell one whose beta is 1.75. Calculate your portfolio’s new beta.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...