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Paul McLaren Holds the Following Portfolio: Paul Plans to Sell

Question 56

Multiple Choice

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?
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


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

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