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A stock has a beta of 1 . 2 5 and an expected return of 1 2 . 3 percent. A risk - free asset

A stock has a beta of 1.25 and an expected return of 12.3 percent. A risk-free asset
currently earns 4.05 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 2 decimal places, e.g.,32.16.)
b. If a portfolio of the two assets has a beta of .85, what are the portfolio weights? (Do
not round intermediate calculations and round your answers to 4 decimal places,
e.g.,.1616.)
c. If a portfolio of the two assets has an expected return of 11.5 percent, what is its beta?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g.,32.16.)
d. If a portfolio of the two assets has a beta of 2.45, what are the portfolio weights? (A
negative answer should be indicated by a minus sign. Do not round intermediate
calculations and round your answers to 4 decimal places, e.g.,.1616.)
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