A stock has a beta of 1 3 and an expected return of 12 8 percent A risk free asset currently earns 4 3 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 b If a portfolio of the two assets has a beta of 90, 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 Weight of the risk free asset c If a portfolio of the two assets has an expected return of 12 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 5, 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 Weight of the risk free asset

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A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free asset currently earns 4.3 percent. a. What is the

A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free asset currently earns 4.3 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 % b. If a portfolio of the two assets has a beta of .90, 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
Weight of the risk-free asset

c. If a portfolio of the two assets has an expected return of 12 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 2.5, 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.)