Question $10$

$10pts$

Bill Johnson manages a diversified portfolio consisting of a $$9,318$ investment in each of $22$ different common stocks. The portfolio's beta is $1\mathrm{.}25.$ Now suppose Bill decided to sell one of the stocks in the portfolio with a beta or $0\mathrm{.}82$ for $$9,318$ and use the proceeds to buy another stock with a beta of $0\mathrm{.}66.$ What would the portfolio's new beta be$?$

Question $11$

$10pts$

Suppose you held a diversified portfolio consisting of a $$10,208$ investment in each of $25$ different common stocks. The portfolio's beta is $1\mathrm{.}42.$ Now suppose you decided to sell one of the stocks in your portfolio with a beta or $0\mathrm{.}99$ for $$10,208$ and use the proceeds to buy another stock with a beta of $0\mathrm{.}88.$ What would your portfolio's new beta be$?$

Question $12$

$10pts$

You have been managinh a $$8\mathrm{.}01$ million portfolio that has a beta of $2\mathrm{.}04$ and a required rate of return of $14\mathrm{.}5\%.$ The current risk$-$free rate is $2\mathrm{.}73\%.$ Assume that you receive another $$1\mathrm{.}09$ million. If you invest the money in a stock with a beta of $1\mathrm{.}39,$ what will be the required return on your new portfolio?