Question: Please answer step by step Suppose you hold a diversified portfolio consisting of a $6,485 invested equally in each of 20 different common stocks. The

Please answer step by step Suppose you hold a diversified portfolio

Please answer step by step

Suppose you hold a diversified portfolio consisting of a $6,485 invested equally in each of 20 different common stocks. The portfolio's beta is 0.81. Now suppose you decided to sell one of your stocks that has a beta of 1.4 and to use the proceeds to buy a replacement stock with a beta of 1.6. What would the portfolio's new beta be? 0.82 1.12 1.02 0.72 0.92

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