A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If a portfolio of the two assets has a beta of .92, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) d. If a portfolio of the two assets has a beta of 2.24, what are the portfolio weights? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)
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A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free...
7 A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 27 percent a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) b. If a portfollo of the two assets has a beta of .92, what are the portfolio welghts? (Do not round intermediate...
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A stock has a beta of 1.0 and an expected return of 14 percent. A risk-free asset currently earns 4.5 percent. a. What Is the expected return on a portfollo that Is equally Invested In the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Expected 9.25 return b. If a portfolio of the two assets has a beta of 0.85, what are the portfolo weights?...
Problem 13-20 Using CAPM [LO4] A stock has a beta of 1.50 and an expected return of 14 percent. A risk-free asset currently earns 2 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, e.g., 32.16.) Expected return % b. If a portfolio of the two assets has a beta of .84, what are the...