Amy Rocket holds a well-diversified portfolio with the following characteristics:

Expected return = 12.0%

Beta = 1.30.

Amy is in the process of buying 1,000 shares of Jack's Box Company at $10 a share and adding it to her portfolio. Jack's Box Company has an expected return of 16.0% and a beta of 1.70. The total value of Amy's current portfolio is $90,000.

What will the expected return and beta on the portfolio be after the purchase of Jack's Box Company stock?

Pick 1

12.40%; 1.34

12.40%; 1.30

11.76%; 1.29

12.00%; 1.23

12.00%; 1.34