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A portfolio of three stocks with total market value of $1,000,000 currently has a beta of 1.4.In light of an expected market downturn,you wish to reduce the portfolio beta to no more than 1.0.Two stocks are likely candidates for sale,one with a beta of 1.8 and a market value of $200,000 and the other with a beta of 1.5 and a market value of $250,000.Assuming that you could find one appropriate stock to replace these two,what should be its beta?
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