A stock has a beta of 1.25 and an expected return of 15 percent. A risk-free asset currently earns 3.2 percent.

a.

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

b.

If a portfolio of the two assets has a beta of .75, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

c.

If a portfolio of the two assets has an expected return of 9 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)

d.

If a portfolio of the two assets has a beta of 2.50, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

a.	Expected return		%
b.	Weight of stock
	Weight of risk-free
c.	Portfolio beta
d.	Weight of stock
	Weight of risk-free