A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 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.) Expected return 4.2 % b. If a portfolio of the two assets has a beta of .88, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Weight of the stock 0.6875 Weight of the risk-free asset 0.3125 c. If a portfolio of the two assets has an expected return of 11.8 percent, what is its beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta 1.15 d. If a portfolio of the two assets has a beta of 2.48, 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 4 decimal places, e.g., 32.1616.) Weight of the stock 1.2 Weight of the risk-free asset -0.2

A stock has a beta of 1.28 and an expected return of 12.6 percent A risk-free asset currently earns 4.2 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 declmal places, e.g., 32.16.) Expected return b. If a portfolio of the two assets has a beta of.88, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) 4.2 0 % 0.6875 0.3125 Weight of the stock Weight of the risk-free asset c. If a portfolio of the two assets has an expected return of 11.8 percent, what is its beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta d. If a portfolio of the two assets has a beta of 2.48, what are the portfolio weights? (A negatlve answer should be Indicated by a minus sign. Do not round intermedlate calculations and round your answers 1.15 to 4 declmal places, e.g., 32.1616.) 1.2 0.2 Weight of the stock Weight of the risk-free asset