You are considering two stocks for your portfolio. The expected return on the market portfolio is 12% and the risk-free rate is 4%. The correlation between A and B is .25. What is the beta for a portfolio that includes $3000 of A, and 2,500 of B?
Stock A Standard deviation is .45 and Beta is 1.25
Stock B Standard Deviation is .55 and Beta is 1.15
Group of answer choices
1.2045
0.5909
0.1400
0.13200
