Question: Question 7 (3 points) Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of

Question 7 (3 points) Both assets B and C plot on

Question 7 (3 points) Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has a beta of 0.50 and an expected return of 7.50%. If you wish to hold a portfolio consisting of assets B and C, and have a portfolio beta equal to 1.0, what proportion of the portfolio must be in asset C? O1) 0.625 2) 0.75 3) 0.375 4) 0.50

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