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OpenStudy (anonymous):

Portfolio Beta Question - Please see the attachment

OpenStudy (anonymous):

OpenStudy (anonymous):

Current portfolio can be divided into 2 parts: 100 000 considered for sale and 300 000 remaining portfolio after the transactions. The weigths are 25% and 75% of current portfolio. If the beta is currently 1.5 and 1.8 after transaction, we can compute as follows: 1.8 * 0.75 = 1.35 1.5 - 1.35 = 0.15 0.15 / 0.25 = 0.6 The beta of the stock Thomas is considering selling is 0.6

OpenStudy (anonymous):

Hey joooonas, the final answer is supposed to be 1.2. There must be something wrong somewhere in your steps

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