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A money manager is holding thefollowing portfolio: Stock AmountInvested Beta 1 $400,000 1.00 2 600,000 0.85 3 300,000 1.20 4 500,000 0.50 5 200,000 1.70 Therisk-free rate is 7 percent and the portfolio’s required rate ofreturn is 13.975 percent. The manager would like to sell all of herholdings of Stock 4 and use half the proceeds to purchase moreshares of Stock 5, and the other half of the proceeds to purchasemore shares of Stock 3. (6 points)What is the beta of the current portfolio?What is the beta of the new portfolio?What would be the portfolio’s required rate of return followingthis change?