posted by Grizelda on .
You hold a diversified portfolio consisting of a $5 000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12. You have decided to sell a lead mining stock (b=1.0) at $5 000 net and use the proceeds to buy a like amount of a s steel company stock(b=2.0). what is the new beta of the portfolio?