A stock has a beta of 1.2 and an expected return of 8 percent. A risk-free asset currently earns 3 percent.

a.	What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Expected return

%

b.	If a portfolio of the two assets has a beta of 1.0, what are the portfolio weights?(Round your answers to 2 decimal places. Omit the "%" sign in your response.)

	Weight
xS	%
xrf	%

c.	If a portfolio of the two assets has an expected return of 6 percent, what is its beta? (Round your answer to 2 decimal places.)

Beta

d.	If a portfolio of the two assets has a beta of 2.40, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response.)

	Weight
xS	%
xrf	%