#11

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Suppose Intel stock has a bela of 0.87, whereas Boeing stock has a beta of 1.13. If the risk-free interest rate is 5.4% and the expocled return of the market portfolio is 13.8%, 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 bota of a portfolio that consists of 65% Intel stock and 35% Booing stock? d. What is the expected return of a portfolio that consists of 65% Intel stock and 35% Boeing stock? (There are fwo ways to solve this.)