Your mother's well-diversified portfolio has an expected return of 12.0% and a beta of 1.20. She is in the process of buying 100 shares of Safety Corp. at $10 a share and adding it to her portfolio. Safety has an expected return of 20.0% and a beta of 2.50. The total value of your current portfolio is $9,000. What will the expected return and beta on the portfolio be after the purchase of the Safety stock? Select the correct answer.

a. rp = 12.80%, bp = 1.33

b. rp = 12.83%, bp = 1.37

c. rp = 12.86%, bp = 1.41

d. rp = 12.77%, bp = 1.29

e. rp = 12.74%, bp = 1.25