You currently hold a portfolio with a market value of $$1\mathrm{.}5$ million and a beta

of $0\mathrm{.}5.$ Your portfolio is expected to yield a rate of return of $9\%.$ Stock A is

currently selling at $$25$ with a next year expected dividend of $$1.$ You expect

the price of stock A to reach $$28$ next year, thus you decide to buy $100,000$

shares of stock A$.$ The return on T$-$bills is $4\%.$ What is the beta of your new

portfolio, which consists of the $$1\mathrm{.}5$ million portfolio that you already own and

the $100,000$ shares of stock A that you are going to purchase? $($Hint: first solve

for the market risk premium implied by the expected return on your existing

portfolio. Then use this information to find out the beta of stock A$.)$