7. You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (that is your total investment is $200,000). The portfolio beta is equal to 1.2. You have decided to sell one of your stocks that has a beta equal to 0.7 for $10,000. You plan to use the proceeds to purchase another stock that has a beta equal to 1.4. What will be the beta of the new portfolio? a) 1.165 b) 1.235 c) 1.250 d) 1.284 e) None of the above 8. You have just invested in a bond that offers an annual coupon rate of 12%, with interest paid semiannually. The face value of the bond is $1,000 and the interest rate in the market is 10%. Given that the bond matures in 5 years, what is the bond's price? a. $1,000 b. $1,077.21 c. $957