Jill Angel holds a $200,000 portfolio consisting of the following stocks.The portfolio's beta is 0.88.
If Jill replaces Stock A with another stock,E,which has a beta of 1.45,what will the portfolio's new beta be? Do not round your intermediate calculations.
A) 1.39
B) 1.28
C) 0.83
D) 1.22
E) 1.11
Correct Answer:
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