You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.16. You plan to sell a stock with b = 0.70 and use the proceeds to buy a new stock with b = 1.70. What will the portfolio's new beta be? Do not round your intermediate calculations.

a. 1.195

b. 1.700

c. 1.210

d. 1.430

e. 1.245