You hold a diversified 4 different stocks' portfolio consisting of a $10,000 investment, among which $2,500 is invested per stock. The portfolio beta is equal to 2.0. You have decided to sell one of your stocks that has a beta equal to 0.8 for $2,500. Then, you plan to use the sale proceeds of $2,500 and add additional $2,500 to purchase another stock that has a beta equal to 2.5. (1). What will be the beta of the NEW portfolio? (2). Given risk-free rate of 3% and S&P 500 Index of 12% what will be the NEW portfolio's required rate of return