Your Retirement Portfolio Consists Of 10 Different Common Stocks That Are Each W

Your retirement portfolio consists of 10 different common stocks that are each worth

$1,500. The beta of the portfolio is 1.5. You decide to sell one stock that has a beta of 1.3. You then will take the proceeds and buy another stock that has a beta of 1.7. Upon buying this new stock that will change the beta of your portfolio.  After buying the new stock, how much does the beta of the portfolio change? (Hint: Find the new portfolio beta)

a.         0.13

b.         0.20

c.          0.32

d.         0.04 

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