Question 270617
If you are talking about the average beta of the stock portfolio, then the answer would be as follows:


Average beta of the portfolio is 1.120.


Since there are 10 stocks, then the total beta of the portfolio is 10*1.120 = 11.20.


Take away one of the stocks with a beta of 1.0 and your total beta of the portfolio becomes 10.20.


Add a stock with a beta of 1.750 and your total beta of the portfolio becomes 11.95.


Divide that total by 10 and your average beta for the portfolio = 1.195.