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12 11 Suppose Intel stock has a beta of 0.81 , whereas Boeing stock has a beta of 2.11 . If the risk-free interest rate

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12 11

Suppose Intel stock has a beta of 0.81 , whereas Boeing stock has a beta of 2.11 . If the risk-free interest rate is 3.15% and the expected return of the market portfolio is 12.17%, 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 40% Intel stock and 60% Boeing stock? d. What is the expected return of a portfolio that consists of 40% Intel stock and 60% Boeing stock? (There are two ways to solve this.) a. What is the expected return of Intel stock? The expected return of Intel stock is \%. (Round to two decimal places.)

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