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Question 14: The expected return on the market has been estimated to be 0.15 with a standard deviation of 0.30. The return on the riskfree

Question 14: The expected return on the market has been estimated to be 0.15 with a standard deviation of 0.30. The return on the riskfree asset is .10. An Asset X has been identified that has a standard deviation of 0.80 and a correlation of its expected return with the expected return on the market of 0.70. Another asset Y has a correlation coefficient with Asset X of .05 and a standard deviation of 0.8.

**Please Show Workings**

The Beta of asset X is:

A: 1.87

B: 0.6

C: 0.3125

D: 3.0

E: 1.5

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