Suppose you hold a diversified portfolio consisting of a $$10,000$ investment in each of $12$ different common stocks. The portfolio's beta is $1\mathrm{.}25.$ Now suppose you decided to sell one of your stocks that has a beta of $1\mathrm{.}00$ and to use the proceeds to buy a replacement stock with a beta of $1\mathrm{.}34.$ What would the portfolio's new beta be$?$

Suppose you hold a diversified portfolio consisting of a $$10,000$ investment in each of $12$ different common stocks. The portfolio's beta is $1\mathrm{.}25.$ Now suppose you decided to sell one of your stocks that has a beta of $1\mathrm{.}00$ and to use the proceeds to buy a replacement stock with a beta of $1\mathrm{.}34.$ What would the portfolio's new beta be$?$

$1\mathrm{.}15$

$1\mathrm{.}34$

$1\mathrm{.}21$

$1\mathrm{.}28$

$1\mathrm{.}41$