You have $150,000 invested in three stocks as follows:

Stock        Investment      Stock’s Beta

SYK               $50,000                      1.9

ISRG             $50,000                      1.2

YUM               $50,000                    0.9

(a) What is the beta value of your portfolio?

(b) You desire a portfolio of 1.15 and will achieve this by selling $25,000 of ISRG and an additional amount SYK, with the proceeds of both sales to purchase YUM. What dollar amount of SYK should you sell? What dollar amount of YUM will you purchase?