Ivan Knobel holds a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20.
He is in the process of buying 1,000 shares of Syngine Corp at $10 a share and adding it to his portfolio. Syngine has an expected return of 13.0% and a beta of 1.50.
The total value of Ivan's current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Syngine stock? please show work.