Question: Bruce Niendorf 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 Bruce plans

Bruce Niendorf 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

Bruce 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?

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