Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are planning to purchase 1,000 shares of Alpha Corp. at $10 a share and add it to your portfolio. Alpha has an expected return of 13.0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?

• A. 11.20%; 1.23
• B. 11.76%; 1.29
• C. 10.64%; 1.17
• D. 12.97%; 1.42
• E. 12.35%; 1.36