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A stock has a beta of 1.3 and an expected return of 10 percent. A risk-free asset currently earns 3.4 percent. a. What is the
A stock has a beta of 1.3 and an expected return of 10 percent. A risk-free asset currently earns 3.4 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.... 32.16.) b. If a portfolio of the two assets has a beta of 104, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32) c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g. 32161.) d. If a portfolio of the two assets has a beta of 2.6. what are the portfolio welghts? (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. Beta d. Weight of stock Weight of risk-free
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