Steve currently has all of his wealth in Treasury bills. He is considering investing 85% of his funds in Airbus, whose beta is 1.98, with the remainder left in Treasury bills. Airbus has an expected return of 24.50% and Treasury bills have an expected return of 5%. What are Steve's portfolio beta and portfolio expected return?

Portfolio beta = 1.833, and Portfolio expected return = 14.750%.

Portfolio beta = 1.683, and Portfolio expected return = 21.575%.

Portfolio beta = 1.683 and Portfolio expected return = 14.750%.

Portfolio beta = 1.833, and Portfolio expected return = 21.575%.