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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