You Hold a Diversified $100,000 Portfolio Consisting of 20 Stocks

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each.The portfolio's beta is 1.12.You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50.What will the portfolio's new beta be? Do not round your intermediate calculations.

A) 1.093
B) 1.185
C) 1.127
D) 1.150
E) 1.242