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1) a stock has a beta of 1.14 and an expected return of 10.5 %. a risk free asset currently earns 2.4 % a) what
1) a stock has a beta of 1.14 and an expected return of 10.5 %. a risk free asset currently earns 2.4 %
a) what is the expected return on a portfolio that is equally invested in the two assets?
b) if a portfolio of the two assets has a beta of .92, what are the portfolio weights?
c) if a portfolio of the two assets has an expected return of 9 %, what is its beta ??
d) if a portfolio of the two assets has a beta of 2.28 , what are the portfolio weights? how do you interpret the weights for the two assets in this case, explain?
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