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A stock has a beta of 1.33 and an expected return of 13.1 percent. A risk-free asset currently earns 4.45 percent. Required: (a) What is
A stock has a beta of 1.33 and an expected return of 13.1 percent. A risk-free asset currently earns 4.45 percent. Required: (a) What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) b) If a portfolio of the two assets has a beta of 0.93, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).) (c) If a portfolio of the two assets has an expected return of 12.3 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) (d) If a portfolio of the two assets has a beta of 2.53, what are the portfolio weights? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)
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