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Business, 19.10.2021 14:00 natalie2sheffield

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 20.5% and a beta of 0.80. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? a) 11.23% and 0.95.
b) 12.07% and 1.32.
c) 10.04% and 0.88.
d) 11.95% and 1.16.
e) 14.22% and 1.00.

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