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Assume the expected return on the market is 10.00 percent and the risk-free rate of return is 2.00 percent. In addition, you have invested $75,000

Assume the expected return on the market is 10.00 percent and the risk-free rate of return is 2.00 percent. In addition, you have invested $75,000 in stock A and $25,000 in stock B. Stock A has a beta equal to 2.00, whereas stock B has a beta equal to 1.00. Based on this information, what is the beta for the portfolio?

1) 1.75

2) 2.00

3) 2.25

4) None of the options listed

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