You have a $1.5 million portfolio consisting of a $100,000 investment in each of 15 different common stocks. The portfolios beta is 1.25. Now suppose you have decided to sell one of the stocks in your portfolio with a beta equal to 0.85 for $100,000 and to use these proceeds to buy another stock for your portfolio. Assume the new stocks beta is 1.24. Calculate your portfolios new beta.

1. 1.2197
2. 1.2497
3. 1.276
4. 1.1667
5. None of the above.