Wh Test $4$ Section $50$ Online Spring $2024($page $2$ of $32)$

Stock A has an expected return of $15\%$ and a beta of $1\mathrm{.}2.$ T$-$bills are promising a $5\%$ rate of return. You want to construct a portfolio of the stock and the T$-$bills that has an expected return of $8\%.$ How much of your money as a percent must you put in Stock $A$ to give you this expected return?

a$.55\%$

b$.40\%$

c$.30\%$

d$.70\%$

e$.50\%$