3)Consider three stocks: A, B and C. Suppose stock A has a beta of 0.6, stock B has a beta of 0.7 and stock C has a beta of 1.6. Furthermore, suppose the risk-free rate is 1.2% and the expected return of the market is 8.5%. Suppose one builds a portfolio consisting of 10% in stock A, 50% in stock B and 40% in stock C. What is the portfolio beta? What is the expected return of the portfolio? (5 points)