Portfolio Beta

Your retirement fund consists of a $$5,000$ investment in each of $15$ different common stocks. The portfolio's beta is $1\mathrm{.}30.$ Suppose you sell one of the stocks with a beta

of $0\mathrm{.}7$ for $$5,000$ and use the proceeds to buy another stock whose beta is $1\mathrm{.}8.$ Calculate your portfolio's new beta. Do not round intermediate calculations. Round your

answer to two decimal places.