A stock has a beta of 12 and an expected return of 10 the


A stock has a beta of 1.2 and an expected return of 10%. The risk free asset currently earns 4%. If a portfolio of the two assets has an expected return of 8%, what is its beta?

A. 0.3

B. 0.6

C. 0.8

D. 1.2

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Finance Basics: A stock has a beta of 12 and an expected return of 10 the
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