number 19

19) Ali has $300,000 and invested half of it in a portfolio consist of three stocks X, Y, Z. he invested $90,000 in X: $30,000 in Y, and the remaining in Z. Y is an average stock has a beta 1 and required return for 12%, however the required return of the portfolio is 13.54%, while treasury bills in the market has a return 5%. If Stock X has a beta 1.2. How much you approximately expect the beta of stock Z.* O A) 1.5 O B) 1.22 O C) 1 OD) 0.85 O E) None of the above