Question

Suppose you hold a diversified portfolio consisting of a $8,950 invested equally in each of 20...

Suppose you hold a diversified portfolio consisting of a $8,950 invested equally
in each of 20 different common stocks.  The portfolio’s beta is 1.42.  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 1.3.  What would
the portfolio’s new beta be?

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