A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. If a portfolio of the two assets has an expected return of 13 percent, what is the beta of the portfolio?
A) 1.06
B) 0.87
C) 1.02
D) 0.95
E) 0.91

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The Answer of A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. If a portfolio of the two assets has an expected return of 13 percent, what is the beta of the portfolio?
A) 1.06
B) 0.87
C) 1.02
D) 0.95
E) 0.91

A Stock Has a Beta of 1