6. You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 2.1, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places.)

Beta =________

7. A share of stock sells for $42 today. The beta of the stock is 1.4, and the expected return on the market is 14 percent. The stock is expected to pay a dividend of $1.50 in one year. If the risk-free rate is 4.1 percent, what should the share price be in one year? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Share Price = $________

8. A stock has a beta of 0.6 and an expected return of 8 percent. A risk-free asset currently earns 3 percent.

A) What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

B) If a portfolio of the two assets has a beta of 0.4, what are the portfolio weights?(Round your answers to 2 decimal places. Omit the "%" sign in your response.)

C) If a portfolio of the two assets has an expected return of 6 percent, what is its beta? (Round your answer to 2 decimal places.)

D) If a portfolio of the two assets has a beta of 1.80, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response.)