29. Suppose Intel stock has a beta of 1.8, whereas Boeing stock has a beta of 1.2....

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29. Suppose Intel stock has a beta of 1.8, whereas Boeing stock has a beta of 1.2. If the risk-free interest rate is 5% and the expected return of the market portfolio is 15%, according to the CAPM,

a. What is the expected return of Intel stock?

b. What is the expected return of Boeing stock?

c. What is the beta of a portfolio that consists of 70% Intel stock and 30% Boeing stock?

d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock (show both ways to solve this)?

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