A stock has a correlation with the market of 0.55. The standard deviation of the market is 21%, and the standard deviation of the stock is 29%. What is the stock's beta?

A) 0.76 B) 1.32 C) 0.40 D) 0.24

27) An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 11% and a standard deviation of return of 18.0%. Stock B has an expected return of 7% and a standard deviation of return of 3%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 5%. The proportion of the optimal risky portfolio that should be invested in stock A is _________.

A) 50% B) 0% C) 55% D) 32%