Tom Noel holds the following portfolio: Stock Investment Beta A $150,000 1.40 B $50,000 0.80 C $100,000 1.00 D $75,000 1.20 Total $375,000 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
Answer: A
Business
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