1.
=3.9%+1.42*(12.4%-3.9%)=15.9700%
2.
=3.9%+0.76*(12.4%-3.9%)=10.3600%
3.
=1.42*65%+0.76*35%=1.18900
4.
=3.9%+(1.42*65%+0.76*35%)*(12.4%-3.9%)=14.0065%
Suppose Intel stock has a beta of 1.42, whereas Boeing stock has a beta of 0.76....
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