Jill holds a $200,000 portfolio consisting of the following stocks. The portfolios beta is 0.875. Stock Investment Beta A $50,000 0.50 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total: $200,000 If Jill replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolios new beta be?

a. 1.07 b. 1.13 c. 1.18 d. 1.24 e. 1.30 f. 1.77