3. Stocks A, B, and C have the following betas and expected returns. Assume that an investor invested 40% in Stock A, 50% in Stock B, and 10% in stock C.

Stock	% of Portfolio Invested	Beta	Return
Stock A	40%	0.6	10%
Stock B	50%	0.9	12%
Stock C	10%	1.5	18%

What is the portfolios beta? What is the portfolios expected rate of return?

0.84 and 11.8%

0.9 and 12%

1.0 and 13%

1.2 and 12.8%