1. Consider a portfolio with an expected return E(rP) = 20%; the standard deviation of this portfolio s returns is sigmaP = 30%. The expected return for the market is E(rM) = 15% and the standard deviation of market s returns is sigmaM = 20%. The risk free rate is if rf = 5%. Answer the following question based on this information. Assuming CAPM holds true for the above portfolio, what should be its beta?

   		1.0
   		1.5
   		4.2
   		- 0.7