You are given the following information about Stocks A and B: State of Economy Rate of Return if State Occurs Stock A Stock B Boom Normal Recession Probability of State of Economy 0.30 0.50 0.20 16% 10% -5% 28% -5% 5% The expected return on the market portfolio is 12% and the risk-free rate is 5%. Assuming that neither of these stocks is over or undervalued: a) What are the betas of Stocks A and B? b) What would be the beta of a portfolio consisting of 70% of Stock A and 30% of Stock B? c) What would be the expected return of the portfolio under b)