Question: Please use formulas instead of excel to solve this. 6. Suppose you hold a diversified portfolio consisting of a $100 investment in each of 10
Please use formulas instead of excel to solve this.
6. Suppose you hold a diversified portfolio consisting of a $100 investment in each of 10 different common stocks. The portfolio's beta is 1.2. You decide to sell one of the stocks that has a beta of 1.5, and use the proceeds (i.e., $100) to buy a replacement stock with a beta of 0.9. What would be your new portfolio's beta? A. B. C. D. 1.12 1.14 1.18 1.21
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