Portfolio Beta

Your retirement fund consists of a $$5,000$ investment in each of $15$ different common stocks.

The portfolio's beta is $1\mathrm{.}10.$ Suppose you sell one of the stocks with a beta of $0\mathrm{.}9$ for $$5,000$

and use the proceeds to buy another stock whose beta is $1\mathrm{.}5.$ Calculate your portfolio's new

beta. Do not round intermediate calculations. Round your answer to two decimal places.

Portfolio Beta

You have a $$2$ million portfolio consisting of a $$100,000$ investment in each of $20$ different

stocks. The portfolio has a beta of $1\mathrm{.}2.$ You are considering selling $$100,000$ worth of one

stock with a beta of $0\mathrm{.}9$ and using the proceeds to purchase another stock with a beta of $1\mathrm{.}6.$

What will the portfolio's new beta be after these transactions? Do not round intermediate

calculations. Round your answer to two decimal places.