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A stock has a beta of 1.32 and an expected return of 13 percent. A risk-free asset currently earns 4.4 percent. a. What is the

image text in transcribed A stock has a beta of 1.32 and an expected return of 13 percent. A risk-free asset currently earns 4.4 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? Note: 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 92 , what are the portfolio weights? Note: 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 12.2 percent, what is its beta? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d. If a portfolio of the two assets has a beta of 2.52 , what are the portfolio weights? Note: 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., .1616

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