You currently have a portfolio that consists of the following stocks.

Company	Return	Shares	Price
AAA	6.50%	200	54
Axe	7.80%	100	120
BR Co.	11.00%	400	30
Basil, Inc	12.65%	500	450
XXX	20.50%	300	100

If the risk premium on the market is 5.5% and the risk-free rate is 2.00%

What is the return on your portfolio? What is the Beta of the portfolio?

If you decide to sell your XXX Stock and replace it with a stock (trading at $50 per share; using the entire proceeds to buy the new shares) that has a Beta of 1.20, what would the beta of your portfolio be and what is its new expected return on your portfolio?