Joseph Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 1.050.

Stock		Investment		Beta
A		$50,000		0.50
B		$50,000		0.70
C		$50,000		1.70
D		$50,000		1.30
Total		$200,000

If Joseph replaces Stock A with another stock, E, which has a beta of 1.35, what will the portfolio's new beta be? Do not round your intermediate calculations.

a. 1.1100

b. 1.3875

c. 1.7000

d. 1.2625

e. 1.2021