Question: Thomas has a five stock portfolio that has a market value
Thomas has a five-stock portfolio that has a market value equal to $400,000. The portfolio’s beta is 1.5. Thomas is considering selling a particular stock to help pay some university expenses. The stock is valued at $100,000, and if he sells it, the portfolio’s beta will increase to 1.8. What is the beta of the stock Thomas is considering selling?
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