A stock has a beta of 1.19, and an expected return of 12.4 %; and a risk-free asset currently earns 2.7 percent.

a. What is the expected return on a porfolio that is equally invested in the two assets?

b. If a portfolio of the two assets ha a beta of 0.92, what are the portfolio weights?

c. If the portfolio of the two asets has an expected return of 10%, what is its beta?

d. If a porfolio of the two assets has a beta of 2.38, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain.