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A stock has a beta of 1 . 3 4 and an expected return of 1 3 . 2 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?
Note: 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?
Note: 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?
Note: 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?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your ans to decimal places, eg
tablea Expected return,b Weight of stock,Weight of riskfree asset,c Beta,d Weight of stock,Weight of riskfree,
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