If jill replaces stock a with another stock e which has a


Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.

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If Jill replaces Stock A with another stock, E, which has a beta of 1.85, what will the portfolio's new beta be?

A. 0.92

B. 1.21

C. 1.3

D. 1.14

E.1.35

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Finance Basics: If jill replaces stock a with another stock e which has a
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