6. The market portfolio has an expected return of 10%. Risk-free bonds currently have yields (interest...

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6. The market portfolio has an expected return of 10%. Risk-free bonds currently have yields (interest rates) of 4.4%. You want to keep 30% of your portfolio invested in these risk-free bonds. The rest of your portfolio will be equally divided between a fund that invests in large-company stocks, which has a beta of 1.2, and a fund that invests in start-up companies, which has a beta of 2.0. Given your investments, what will be the beta of your whole portfolio? A. 0.96 B. 1.12 C. 1.42 D. 1.60 E. 1.90 6. The market portfolio has an expected return of 10%. Risk-free bonds currently have yields (interest rates) of 4.4%. You want to keep 30% of your portfolio invested in these risk-free bonds. The rest of your portfolio will be equally divided between a fund that invests in large-company stocks, which has a beta of 1.2, and a fund that invests in start-up companies, which has a beta of 2.0. Given your investments, what will be the beta of your whole portfolio? A. 0.96 B. 1.12 C. 1.42 D. 1.60 E. 1.90