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A stock has a beta of 1 . 2 8 and an expected return of 1 2 . 6 percent. A risk - free asset
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? A
negative answer should be indicated by a minus sign. Do not round intermediate
calculations and round your answers to decimal places, eg
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