Tom Noel Holds the Following Portfolio: Tom Plans to Sell

question 41

Multiple Choice

Tom Noel holds the following portfolio: Tom plans to sell Stock A and replace it with Stock E,which has a beta of 0.80.By how much will the portfolio beta change? Do not round your intermediate calculations.

• A) -0.240
• B) -0.194
• C) -0.290
• D) -0.271
• E) -0.230

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