|Suppose you hold a diversified portfolio consisting of a $5,396 investment|
|in each of 10 different common stocks. The portfolio’s beta is 0.83. Now|
|suppose you decided to sell one of your stocks that has a beta of 1 and to|
|use the proceeds to buy a replacement stock with a beta of 1.7. What would|
|the portfolio’s new beta be?|
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