Suppose you hold a diversified portfolio consisting of a $7500 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12. Now suppose you have decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7500 and to use these proceeds to buy another stock for your portfolio. Assume the new stock’s beta is equal to 1.75. Calculate your portfolio’s new beta.

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces