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A stock has a beta of 1 . 4 and an expected return of 1 6 percent. A risk - free asset currently earns 4
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. Enter your answer as a percent rounded to decimal places.
b If a portfolio of the two assets has a beta of what are the portfolio weights? Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
c If a portfolio of the two assets has an expected return of percent, what is its beta? Do not round intermediate calculations. Round your answer to decimal places.
d If a portfolio of the two assets has a beta of what are the portfolio weights? A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
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