Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.12. Now suppose you decide to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and to use these proceeds ($7,500) to buy another stock with a beta of 2.5. What would your portfolio's new beta be? (4 decimal places may be needed for the calculations)

A)1.175

B)1.185

C)1.195

D)1.158

E) 1.165