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Assume you are investing 40% of your money in Stock A, and 60% in Stock B. Betas for Stock A is 1.2, and for Stock B is 0.8. ------------------------------------------------------- Probability | Stock A | Stock B | ------------------------------------------------------- 0.53 | 13% | 22% | 0.47 | 18% | 10% | ------------------------------------------------------ 19. The beta for the portfolio is: a. 0.96. b. 0.78. c. 1.10. d. 1.20. 20. The standard deviation for the portfolio is: a. 0.000674. b. 0.025953. c. 0.000623. d. 0.059892.

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