A portfolio is priced to return 10% in the upcoming year. The portfolio is composed of the following three stocks:

Stock	Beta	Share Price	# of shares bought
Alcoa	0.8	$20	100
Budweiser	1.2	$40	100
Cisco	????	$20	100

The current risk-free rate in the economy is 2%, while the market portfolio risk premium is 8%. What must the Beta of Cisco be for the portfolio to be fairly priced?

Question 26 options:

	0.6
	0.8
	1.0
	1.4
	2.13