Asset W has an expected return of 15.2 percent and a beta of 1.25. If the risk-free rate is 5.3 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the relationship between portfolio expected return and portfolio beta by plotting the expected returns against the betas. What is the slope of the line that results?

Transcribed Image Text:

Percentage of Portfolio in Asset W Portfolio Expected Return Portfolic Beta 0% 25 50 75 100 125 150