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1. Suppose you hold a portfolio consisting of a $10,000 investment in each of 5 different common stocks (Portfolio total $50,000). The portfolio's beta is

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1. Suppose you hold a portfolio consisting of a $10,000 investment in each of 5 different common stocks (Portfolio total $50,000). The portfolio's beta is 1.37. Now suppose you decided to sell one of your stocks that has a beta of 1.1 and to use the proceeds to buy a replacement stock with a beta of 1.2. What would the portfolio's new beta be? Do not round your intermediate calculations. (4 points)

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