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Kristina Raattama Holds a $200,000 Portfolio Consisting of the Following

Question 40

Multiple Choice

Kristina Raattama holds a $200,000 portfolio consisting of the following stocks.The portfolio's beta is 0.875. If Kristina replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?


A) 1.07
B) 1.13
C) 1.18
D) 1.24
E) 1.30

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