Portfolio ABC's standard deviation of returns is $40\%.$ Market portfolio has an expected return of $8\%$ and standard deviation of market returns

is $20\%.$ Correlation between ABC $\text{'}$s returns and market portfolio returns is $0\mathrm{.}75.$ The risk$-$free rate is $2\%.$ What is the beta of ABC $?$

A$.1\mathrm{.}5$

B$.1\mathrm{.}6$

C$.1\mathrm{.}2$

D$.1\mathrm{.}3$

QUESTION $7$

What is the beta of the risk$-$free asset?

A$.0$

B$.1$

C$.-1$

D$.0\mathrm{.}5$