A stock has a beta of 1.00 and an expected return of 10 percent. A risk-free asset currently earns 2.2 percent.

a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

Expected return= %

b. If a portfolio of the two assets has a beta of .80, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places. (e.g., 32.1616))

Weight of stock=

Risk-free weight =

c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.161))

Beta =

d. If a portfolio of the two assets has a beta of 2.00, what are the portfolio weights? (Do not round intermediate calculations and negative amount should be indicated by a minus sign.)

Weight of stock =

Risk-free weight =