You hold a diversified portfolio consisting of a $$10,000$ investment in each of $15$

different common stocks $($i$.$e$.,$ your total investment is $$150,000).$ The portfolio beta

is equal to $1\mathrm{.}2.$ You have decided to sell one of your stocks which has a beta equal to

$1\mathrm{.}5$ for $$10,000.$ You plan to use the proceeds to purchase another stock which has a

beta equal to $1\mathrm{.}7.$ What will be the beta of the new portfolio? Show your answer to

$2$ decimal places.

Your Answer:

Answer