You are managing a portfolio of 10 shares which are held in equal amounts.The current beta of the portfolio is 1.64, and the beta of Share A is 2.0.If Share A is sold, what would the beta of the replacement share have to be to produce a new portfolio beta of 1.55?
A) 1.10
B) 1.00
C) 0.90
D) 0.75
E) 0.50
Correct Answer:
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