A stock has a beta of 0.6 and an expected return of 10 percent. A risk-free...

A stock has a beta of 0.6 and an expected return of 10 percent. A risk-free asset currently earns 4.1 percent.

a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. If a portfolio of the two assets has a beta of 0.57, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Stock:

Risk Free Asset:

c. If a portfolio of the two assets has an expected return of 8.25 percent, what is its beta? (Do not round intermediate calculations.Round your answer to 4 decimal places.)

d. If a portfolio of the two assets has a beta of 1.10, what are the portfolio weights? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Stock:

Risk Free Asset:

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jeff jeffy answered 1 year ago

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