Suppose Intel stock has a beta of 0.89, whereas Boeing stock has a beta of 1.21. If the risk-free interest rate is 5.1% and the expected return of the market portfolio is 13.4%, according to the CAPM,

a. What is the expected return of Intel stock?

b. What is the expected return of Boeing stock?

c. What is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock?

d. What is the expected return of a portfolio that consists of 70% Intel stock and 30% Boeing stock?

A. answer for part a = 11.1%; answer for part b = 13.3%; answer for part c = 0.88; answer for part d = 12.6%

B. answer for part a = 11.6%; answer for part b = 13.8%; answer for part c = 0.86; answer for part d = 13.1%

C. answer for part a = 12.5%; answer for part b = 15.1%; answer for part c = 0.98; answer for part d = 13.2%

D. answer for part a = 12.6%; answer for part b = 15.3%; answer for part c = 0.99; answer for part d = 13.4%