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A STOCK HAS A BETA OF 1.14 AND AN EXPECTED RETURN OF 10.5 PERCENT. A RISK FREE ASSET CURRENTLY EARNS 2.4 PERCENT. A: WHAT IS

A STOCK HAS A BETA OF 1.14 AND AN EXPECTED RETURN OF 10.5 PERCENT. A RISK FREE ASSET CURRENTLY EARNS 2.4 PERCENT.

A: WHAT IS TH EXPECTED RETURN ON A PORTFOLIO THAT IS EQUALLY INVESTED IN TWO ASSETS?

B: IF A PORTFOLIO OF THE TWO ASSETS HAS A BETA OF .92, WHAT ARE THE PORTFOLIO WEIGHTS?

C: IF A PORTFOLIO OF THE TWO ASSETS HAS AN EXPECTED RETURN OF 9 PERCENT, WHAT ISS BETA?

D: IF A PORTFOLIO OF THE TWO ASSETS HAS A BETA OF 2.28, WHAT ARE TEH PORTFOLIO WEIGHTS ?

HOW DO YOU INTERPRET THE WEIGHTS FOR THE TWO ASSETS IN THIS CASE? EXPLAIN

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