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Paul McLaren Holds the Following Portfolio

Question 1

Multiple Choice

Paul McLaren holds the following portfolio: Paul McLaren holds the following portfolio: Paul plans to sell Stock A and replace it with Stock E,which has a beta of 0.75.By how much will the portfolio beta change? A) -0.190 B) -0.211 C) -0.234 D) -0.260 E) -0.286
Paul plans to sell Stock A and replace it with Stock E,which has a beta of 0.75.By how much will the portfolio beta change?


A) -0.190
B) -0.211
C) -0.234
D) -0.260
E) -0.286

Correct Answer:

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