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Suppose the market portfolio, m , contains two stocks, m 1 and m 2 . St. deviation (%) Stock m 1 6 Stock m 2

Suppose the market portfolio, m, contains two stocks, m₁ and m₂.

	St. deviation (%)
Stock m₁	6
Stock m₂	3

m is invested 30% in m₁ and 70% in m₂, and the correlation coefficient between m₁ and m₂ is 0.5. The beta of stock m₁(correct to one decimal place) is:

	A.	0.7
	B.	1.5
	C.	0.6
	D.	0.9

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