Problem 2 You are given the following information about Stocks A and B : The expected return on the market portfolio is 12% and the risk-free rate is 5%. Assuming that neither of these stocks is over or undervalued: a) What are the betas of Stocks A and B? b) What would be the beta of a portfolio consisting of 70% of Stock A and 30% of Stock B? c) What would be the expected return of the portfolio under b)? ! Problem 2) b) What would be the beta of a portfolio consisting of 70% of Stock A and 30% of Stock B? Select one: 0.690.410.001.000.642.000.500.46crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout Problem 2) c) What would be the expected return of the portfolio under b)? Select one: 7.86% cross out 6.90% cross out 9.49% cross out 8.80% cross out 8.23% cross out 12.00% cross out 5.00% cross out 6.25% cross out