Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's 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 Sherrie replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?

a. 1.18

b. 1.30

c. 1.24

d. 1.13

e. 1.07