3. The Beta of a stock is 1.25, the expected return is 13.25%, and the risk-free asset pays 2.4%.

a. Determine the expected return for a portfolio invested equally in these two assets.

b. Is that possible for a portfolio composed of these two assets to have a Beta of 1.45? And a Beta of 0.95? What would be the weights of those assets in both situations (if possible)?

c. If a portfolio composed of the two assets has an expected return of 11%, what is the Beta of this portfolio?

d. If a Beta of a portfolio composed of these two assets is 2.15, what are the weights of the assets on this portfolio? Explain how you would interpret the weights of them in this case.