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You hold a diversified $ 1 0 0 , 0 0 0 portfolio consisting of 2 0 stocks with $ 5 , 0 0 0

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b =0.90 and use the proceeds to buy a new stock with b =1.25. What will the portfolio's new beta be? Do not round your intermediate calculations.
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0.853
1.103
0.956
1.138
1.285

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