You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.18. You plan to sell a stock with b = 0.60 and use the proceeds to buy a new stock with b = 1.60. What will the portfolio's new beta be? Do not round your intermediate calculations. a. 1.230 b. 1.390 c. 1,210 O d. 1.260 e. 1.600

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.18 . You plan to sell a stock with b 0.60 and use the proceeds to buy a new stock with b=1.60. What will the portfolio's new heta be? Do not round your intermediate calculations. a. 1230 b. 1390 c. 1.210 d. 1260 e. 1.600