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256 ISK AND RETURN P7-6 R efer to Figure 7.2 on page 233 and answer the following questions. What return would you expect on a

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256 ISK AND RETURN P7-6 R efer to Figure 7.2 on page 233 and answer the following questions. What return would you expect on a share with a beta of 2.0? a b What return would you expect on a share with a beta of 0.66? c What determines the slope of the line in Figure 7.2? RISK AND RETURN FOR PORTFOLIOs Calculate the portfolio weights implied by the dollar investments in each of the asset classes P7-7 below Asset Shares Bonds $ invested $10,000 $10,000 5,000 Treasury notes 7-8 Wendi Deng recently inherited $1 million and has decided to invest it. Her portfolio consists of following positions in several shares. Calculate the portfolio weights to fill in the bottom row a table. Intel General Motors Procter&Gamble Excxon Mobil Shares 7,280 5,700 5,300 6.000 RISK AND RETURN FOR PORTFOLIUS ce below Asset Shares Bonds Treasury notes $ invested $10,000 $10,000 $ 5,000

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