A stock has a beta of 1.24 and an expected return of 12.2 percent. A risk-free asset currently earns 4.00 percent.

Required:
(a)	What is the expected return on a portfolio that is equally invested in the two assets? (Do not include the percent sign (%). 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 0.84, what are the portfolio weights? (Round your answers to 4 decimal places (e.g., 32.1616).)

Weight of the stock
Weight of the risk-free asset

(c)	If a portfolio of the two assets has an expected return of 11.4 percent, what is its beta? (Round your answer to 2 decimal places (e.g., 32.16).)

Beta

(d)	If a portfolio of the two assets has a beta of 2.44, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places (e.g., 32.1616).)

Weight of the stock
Weight of the risk-free asset

You own a stock portfolio invested 35 percent in Stock Q, 17 percent in Stock R, 35 percent in Stock S, and 13 percent in Stock T. The betas for these four stocks are 1.04, 1.10, 1.50, and 1.95, respectively.

Required:

What is the portfolio beta? (Round your answer to 2 decimal places (e.g., 32.16).)

Portfolio beta

You have $14,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 13 percent and Stock Y with an expected return of 9 percent. Assume your goal is to create a portfolio with an expected return of 11.50 percent.

Required:

How much money will you invest in Stock X and Stock Y? (Do not include the dollar signs ($). Round your answers to the nearest whole dollar amount (e.g., 1,234,567).)

Investment in Stock X	$
Investment in Stock Y	$

You own a portfolio that is 30 percent invested in Stock X, 45 percent in Stock Y, and 25 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively.

Required:

What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Expected return on the portfolio

%