Question

Suppose you hold a diversified portfolio consisting of a $5,396 investment in each of 10 different...

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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