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17. Using CAMP [LO4] A stock has a beta of 1.35 and an expected return of 16 percent. A risk free asset currently earns 4.8
17. Using CAMP [LO4] A stock has a beta of 1.35 and an expected return of 16 percent. A risk free asset currently earns 4.8 percent. a. What is the expected return on a porfolio that is equally invested in the two assets? b. If a portfolio of the two assets has a beta of .95 what are the portfolio weights? c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta? d. If a portfolio of the two assets has a beta of 2.70, what are the portfolio weights? How do you interpret the weights for the assets in this case? Explain
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