Stock XYZ Has a Beta of 1

Multiple Choice

Stock XYZ has a beta of 1.2 and an expected return of 14%; the risk-free asset (T-bills) currently earns 4%. If the portfolio of the two assets has a beta of 1.6, what are the portfolio weights?

A) risk-free asset = 33%, stock XYZ = 67%
B) risk-free asset = 0%, stock XYZ = 100%
C) risk-free asset = 133%, stock XYZ = -33%
D) risk-free asset = -33%, stock XYZ = 133%