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A stock has a beta of 0 . 8 and an expected return of 1 8 percent. A risk - free asset currently earns 4
A stock has a beta of and an expected return of percent. A riskfree asset currently earns percent.
a What is the expected return on a portfolio that is equally invested in the two assets?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
Expected return
b If a portfolio of the two assets has a beta of what are the portfolio weights?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
tablePortfolio WeightStockRiskfree asset,
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