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15) Assume that you hold a well-diversified portfolio that has an expected return of 9.0% and a beta of 1.00. You are in the process
15) Assume that you hold a well-diversified portfolio that has an expected return of 9.0% and a beta of 1.00. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 12.0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Group of answer choices
10.5%;1.25
9.3%; 1.05
11.0%; 1.05
12.0%; 1.25
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