7. Consider the one-factor APT. The variance of return on the factor portfolio is .06 . The beta of a well-diversified portfolio on the factor is 1.3. The variance of return on the well-diversified portfolio is approximately A. .0360 B. .0600 C. .0780 D. 1014 8. You invest $600 in security A with a beta of 1.2 and $400 in security B with a beta of .90 . The beta of this formed portfolio is A. 1.02 B. 1.05 C. 1.08 D. 1.10