A portfolio manager is interested in constructing a portfolio using three asset classes: U.S. stocks, U S bonds, and foreign stocks. The research team estimates the following inputs for calculating the expected return and variance of the three asset portfolio. The team also forecasts the expected return and the standard deviation of the Morgan Stanley EAFE index (Europe, Australia, Far East) as a proxy for the market portfolio Based on the estimates above, the portfolio manager decides to construct a portfolio that is 1/3 in U. S. stocks, 1/3 in U.S. bonds, and 1/3 in foreign stocks. The manager is also interested in the beta coefficient measured against the EAFE index for the portfolio that she constructs. Based on the estimates above, the portfolio manager decides to construct a portfolio that is 1/3 in U.S. stocks, 1/3 in U.S. bonds, and 1/3 in foreign stocks. The manager is also interested in the beta coefficient measured against the EAFE index for the portfolio that she constructs. The expected return for U.S. stocks reported in the table above is equal to the value predicted by the CAPM. Based on this, the beta for U.S. stocks is closest to: 0 70. 1 00. 1 25. 2.00