You are managing a portfolio of 10 stocks which are held in equal amounts. The current beta

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You are managing a portfolio of 10 stocks which are held in equal amounts. The current beta of the portfolio is 1.64, and the beta of stock A is 2.0. If stock A is sold.

What would the beta of the replacement stock have to be to produce a new portfolio beta of 1.55?

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1111530266

11th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: Jun 20, 2023 02:13 AM

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You are managing a portfolio of 10 stocks which are held in equal amounts. The current beta

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Current beta of the portfolio 1 64 Beta of stoc... View the full answer

Intermediate Financial Management

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