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A stock has a beta of 1.0 and an expected return of 12 percent. A risk-free asset currently earns 3.6 percent. If a portfolio of
A stock has a beta of 1.0 and an expected return of 12 percent. A risk-free asset currently earns 3.6 percent.
If a portfolio of the two assets has an expected return of 12.00 percent, what is its beta? Note: Do not round intermediate calculations. Round your answer to 4 decimal places. If a portfolio of the two assets has a beta of 1.35 , what are the portfolio weights? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal placesStep by Step Solution
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