You hold a diversified portfolio consisting of many different common stocks with a total market value of $100,000. The portfolio beta is equal to 1.15. You have decided to sell one of your stocks, a lead mining stock whose beta is equal to 0.7, for $10,000 net and to use the proceeds to buy $10,000 of stock in a steel company whose beta is equal to 2.3. What will be the new beta of the portfolio? (Round to two digit decimal places, e. g., 1.15)
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