# Question: paul mclaren holds the following portfolio stock investment beta a...

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Paul McLaren 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 Paul plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change? a. −0.260 b. −0.286 c. −0.190 d. −0.211 e. −0.234