You have a $$2$ million portfolio consisting of a $$100,000$ investment in each of $20$ different stocks. The portfolio has a beta of $1\mathrm{.}1.$ You are considering selling $$100,000$ worth of one stock with a beta of $0\mathrm{.}5$ and using the proceeds to purchase another stock with a beta of $1\mathrm{.}4.$ What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places. Historical Realized Rates of Return

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks

you are researching, Stock A and Stock B$,$ have the following historical returns:

a$.$ Calculate the average rate of return for each stock during the $5-$year period. Do not round

intermediate calculations. Round your answers to two decimal places.

Stock A:

$\%$

Stock B:

$\%$

b$.$ Suppose you had held a portfolio consisting of $50\%$ of Stock A and $50\%$ of Stock B$.$ What would

have been the realized rate of return on the portfolio in each year? What would have been the

average return on the portfolio during this period? Do not round intermediate calculations. Round

your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.

c$.$ Calculate the standard deviation of returns for each stock and for the portfolio. Do not round

intermediate calculations. Round your answers to two decimal places.