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Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolios beta is 1.25. Now suppose

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolios beta is 1.25. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 0.80. What would your portfolios new beta be? The new portfolio beta is

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