Question: Suppose you are given the following data. Asset Expected Return Standard Deviation Beta Market 5.8% A 7% 30% 1.25 B 5% 20% Risk-free 1% Assets

Suppose you are given the following data.

Asset	Expected Return	Standard Deviation	Beta
Market	5.8%
A	7%	30%	1.25
B	5%	20%
Risk-free	1%

Assets A and B are the only risky assets in the economy, i.e., market portfolio consists of Assets A and B. The correlation between assets A and B is 0.25. Based on this information, what is the beta of Asset B

0.754

0.950

0.833

1.5

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