Suppose you held a diversified portfolio consisting of a $7, 500 investment in each of 20 different common stocks.
The portfolio's beta is 0.77. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7, 500 and use the proceeds to buy another stock with a beta of 1.23.
What would your portfolio's new beta be? Do not round intermediate calculations. ___________