23. Calculating Portfolio Weights Stock J has a beta of 1.23 and an expected return of 13.25 percent, while Stock K has a beta of .84 and an expected return of 10.60 percent. You want a portfolio with the same risk as the market. How much will you invest in each stock? What is the expected return of your portfolio?

Refer to Chapter 11 Question 23. What is the expected return of your portfolio?

Group of answer choices

11.69%

13.06%

12.37%

10.99%

Refer to Chapter 11 Question 30. The beta (systematic risk) coefficients of Stocks I and II are ________ and ________, respectively.

Group of answer choices

1.9; 0.8

0.9; 1.8

1.8; 0.9

0.8; 1.9

Systematic versus Unsystematic Risk Consider the following information on Stocks I and II: The market risk premium is 7 percent, and the risk-free rate is 4 percent. Which stock has more systematic risk? Which one has more unsystematic risk? Which stock is "riskier"? Explain