Question 7 (2 points) You are analyzing potential investments for a client. Stock A has an expected return of 13.0% and its covariance with the market portfolio is 0.0079. Stock B has a return variance of 0.0942 and a correlation with the market portfolio of 0.12. Stock C has a beta of 1.2 and expected return of 7.0%. Long term investment-grade corporate bonds currently yield 4.1%, 10 year government bonds yield 2.3%, and inflation stands at 2.1%. What is the expected return of Stock B? The expected return is 4.98%. The expected return is 7.21%. The expected return is 4.60%. The expected return is 5.60%