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A stock has a beta of 1 . 1 0 and an expected return of 1 2 percent. A risk - free asset currently earns
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? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b
If a portfolio of the two assets has a beta of what are the portfolio weights? Do not round intermediate calculations and round your answers to decimal places, eg
c
If a portfolio of the two assets has an expected return of percent, what is its beta? Do not round intermediate calculations and round your answer to decimal places, eg
d
If a portfolio of the two assets has a beta of what are the portfolio weights?
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