The Risk-Free Rate Is 4

Multiple Choice

The risk-free rate is 4.6% and the expected return on the market is 10.5%. Stock A has a beat of 1.2. For a given year, Stock A returned 15.9% while the market returned 13.8%. The systematic portion of the return was _________ and the unsystematic portion was _________.

A) 3.01%; 1.23%
B) 2.85%; 1.07%
C) 3.96%; 0.26%
D) 1.57%; 0.87%
E) 2.25%; 1.69%