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A stock has a beta of 1 . 1 7 and an expected return of 1 5 . 4 percent. A risk - free asset

A stock has a beta of 1.17 and an expected return of 15.4 percent. A risk-free asset currently earns 4.7 percent. The beta of a portfolio comprised of these two assets is .76. What percentage of the portfolio is invested in the stock?
A)65 percent
B)77 percent
C)74 percent
D)71 percent
E)62 percent
What is the standard deviation of the returns on a $30,000 portfolio that consists of Stocks S and T? Stock S is valued at $18,000.
\table[[,\table[[Probability of],[State of Economy]],\table[[Rate of Return],[if State Occurs]]],[,,Stock S,Stock T],[Boom,.05,.11,.09],[Normal,.85,.08,.07],[Bust,.10,-.05,.04]]
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